This needs to be done in EXCEL

You will be constructing the financial analysis which would be the basis for your business case in trying to sell Nuts and Boltz on the time tracking system for salaried workers. After talking to the project team and ITS staff, you have come up with the following information: One challenge in the project will be choosing the server platform for the new application, between Windows and Linux. While there may be other organizational issues involved (i.e. Windows is the platform that is best understood by the internal IT staff at Nuts and Boltz), your consideration at this point is simply the financial analysis. The up-front costs (year 0) of the Windows platform is estimated to be $12,000 for hardware, $10,000 for software licensing, and $8,000 for installation and configuration. After installation, (year 1 through the useful lifetime of the system) maintenance costs are estimated at just $1,000 per year since internal IT staff are able to perform maintenance. The up-front costs (year 0) of the Linux platform is estimated to be $12,000 for hardware, $1,000 for software licensing, and $4,000 for installation and configuration. After installation (year 1 through the useful lifetime of the system) maintenance costs are estimated to be $2,500 per year since Nuts and Boltz would have to make use of outside resources for maintenance. Outside of choosing a server platform, all other factors are the same. The application will be written from scratch by a local vendor at an estimated cost of $37,500. Administrative staff salaries during the anticipated six-month duration of the project will run an additional $5,500. Finally, a cost of $2,500 will be incurred in building an initial data set from old payroll records. These costs will all be incurred during the year in which the system is developed (consider this year 0). Once the system is put into production, it is expected that there will be 5 years of useful life gained from the system. Operational costs have been estimated as follows: Year 1 $22,500, Year 2, $24,000, Year 3 $26,000, Year 4 $29,000 and Year 5 $33,000. The main benefits that Nuts and Boltz hopes to gain from the system is increased sales revenues that will be derived from having a more accurate reflection of engineering costs. No benefit will be realized in year 0, while the system is being built. After a discussion with the Sales Manager, the project team estimates that an additional $50,000 of additional sales will be generated in Year 1, $75,000 in Year 2, and $125,000 in Years 3 through 5. Before we can move forward on the project, we need to prove that investing in this system is better than simply investing the project money in a bond. The company could theoretically earn 6% by reinvesting some of its reserves in a bond instead of in the project (so assume that 6% is your discount rate). Rounding to two decimal places, calculate the NPV, ROI and payback periods for each the Windows and Linux platform options. Based on your calculations, should the project be pursued, or should the money be invested in the safe bond investment instead? Which platform should the project team recommend? Justify your answer. Next, using Excel's NPV value, recalculate the NPV on the project. Show how to get the exact same value through the manual calculations you carried out. You need to show your work on this...e.g. make sure that you are providing comments on your spreadsheet and discussing the various calculations you used. This will let me know that you understand how the numbers are generated and that you understand what they mean! No work...no points... You will be constructing the financial analysis which would be the basis for your business case in trying to sell Nuts and Boltz on the time tracking system for salaried workers. After talking to the project team and ITS staff, you have come up with the following information: One challenge in the project will be choosing the server platform for the new application, between Windows and Linux. While there may be other organizational issues involved (i.e. Windows is the platform that is best understood by the internal IT staff at Nuts and Boltz), your consideration at this point is simply the financial analysis. The up-front costs (year 0) of the Windows platform is estimated to be $12,000 for hardware, $10,000 for software licensing, and $8,000 for installation and configuration. After installation, (year 1 through the useful lifetime of the system) maintenance costs are estimated at just $1,000 per year since internal IT staff are able to perform maintenance. The up-front costs (year 0) of the Linux platform is estimated to be $12,000 for hardware, $1,000 for software licensing, and $4,000 for installation and configuration. After installation (year 1 through the useful lifetime of the system) maintenance costs are estimated to be $2,500 per year since Nuts and Boltz would have to make use of outside resources for maintenance. Outside of choosing a server platform, all other factors are the same. The application will be written from scratch by a local vendor at an estimated cost of $37,500. Administrative staff salaries during the anticipated six-month duration of the project will run an additional $5,500. Finally, a cost of $2,500 will be incurred in building an initial data set from old payroll records. These costs will all be incurred during the year in which the system is developed (consider this year 0). Once the system is put into production, it is expected that there will be 5 years of useful life gained from the system. Operational costs have been estimated as follows: Year 1 $22,500, Year 2, $24,000, Year 3 $26,000, Year 4 $29,000 and Year 5 $33,000. The main benefits that Nuts and Boltz hopes to gain from the system is increased sales revenues that will be derived from having a more accurate reflection of engineering costs. No benefit will be realized in year 0, while the system is being built. After a discussion with the Sales Manager, the project team estimates that an additional $50,000 of additional sales will be generated in Year 1, $75,000 in Year 2, and $125,000 in Years 3 through 5. Before we can move forward on the project, we need to prove that investing in this system is better than simply investing the project money in a bond. The company could theoretically earn 6% by reinvesting some of its reserves in a bond instead of in the project (so assume that 6% is your discount rate). Rounding to two decimal places, calculate the NPV, ROI and payback periods for each the Windows and Linux platform options. Based on your calculations, should the project be pursued, or should the money be invested in the safe bond investment instead? Which platform should the project team recommend? Justify your answer. Next, using Excel's NPV value, recalculate the NPV on the project. Show how to get the exact same value through the manual calculations you carried out. You need to show your work on this...e.g. make sure that you are providing comments on your spreadsheet and discussing the various calculations you used. This will let me know that you understand how the numbers are generated and that you understand what they mean! No work...no points