1. What is the ROI for this project?
   • Assume the following facts:

• A project will cost $45,000 to develop.
• When the system becomes operational after a one-year development period, operational costs will be $9,000 during each year of the system's five-year useful life.
• The system will produce benefits of $30,000 in the first year of operation, and this figure will increase by a compound 10% each year.