These are the values of productivity and quality of the warehouse detected by the initial internal audit, and the volumes of activity and costs of the operators and machinery used.

AUDIT
	PRODUCTIVITY
Order Preparation	Picking boxes	60	boxes per hour
Order Preparation	Complete pallet	9	pallet per hour
Merchandise Reception	Complete pallet	10	pallet per hour
	QUALITY
Order Preparation	Ratio errors	10%	10% order with error
Order Preparation	Extra Costs Claims	5000	monthly
Average monthly volume
Prepared picking boxes	120000
Pallet Prepared	6000
Pallet Received	9000
Cost of 1 operator	24000	annual
Rented picking trucks	14
Forklift rental cost	450	my
Shrink wraps for rented pallet	12
Retractable rental cost	800	my

Once all the project proposals were received from the bidders, the company selected the project that offered a better relationship between the cost of the project and the expected results once it was implemented. These are the costs of the selected project.

BEST PROPOSAL
IMPLEMENTATION COSTS YEAR (0)
Cost Software Licenses WMS	125000
Coste Cosnultoria SGA	65000
Hardware Cost (Server)	12000
Hardware Cost (RF Terminals)	30000
RECURRING COSTS FROM YEAR1
Annual licensing costs GHS	12%
Manteminiento Hardware cost annual	10%
Annual consultative support	15000

And these are the expected productivitys once the project is implemented, according to the information provided by the bidder of the selected project, for a pessimistic scenario.

PESSIMISTIC SCENARIO PROPOSAL
	PRODUCTIVITY
Order Preparation	Picking boxes	70	boxes per hour
Order Preparation	Complete pallet	10	pallet per hour
Merchandise Reception	Complete pallet	12	pallet per hour
	QUALITY
Order Preparation	Ratio errors	5%	5% order with error
Order Preparation	Extra Costs Claims	3000	monthly
MACHINERY (PESIMISTIC)
Rented picking trucks	12
Forklift rental cost	450	my
Shrink wraps for rented pallet	10
Retractable rental cost	800	my

And these are the expected productivitys once the project is implemented, according to the information provided by the bidder of the selected project, for an optimistic scenario.

OPTIMISTIC PROPOSAL
	PRODUCTIVITY
Order Preparation	Picking boxes	90	boxes per hour
Order Preparation	Complete pallet	12	pallet per hour
Merchandise Reception	Complete pallet	14	pallet per hour
	QUALITY
Order Preparation	Ratio errors	2%	2% order with error
Order Preparation	Extra Costs Claims	1500	monthly
MACHINERY (PESIMISTIC)
Rented picking trucks	10
Forklift rental cost	450	my
Shrink wraps for rented pallet	8
Retractable rental cost	800	my

Questions:

1. Calculate a table by years, from year 1 to year 5, breaking down the maintenance costs, and operating cost (operators and machines) for the two scenarios proposed.

2. Calculate, from year 1 to year 5, the savings achieved by the company thanks to the implementation of the project, for both scenarios.

3. Calculate, from year 1 to year 5, the Net Accumulated Value (NPV with rate 10%), the IRR, and the Return on Investment (ROI or PayBack) of the project, for both scenarios.

Observations: Consider that the scenarios, both pessimistic and optimistic, will take place from Year 1.

Assume 12 working months and 160 hours per month, and that contracted operators work by the hour, and not by full days