Year 3 1 Project Management Payback Analysis for Pizza Delivery System Project Cash flow description Year o Year 1 Year 2 Year 4 Year 5 Development cost: ($60,000) Operation cost: $ (10,000) $ (12,000) S (14,000) $ (16,000) $ (18,000) Discount factors for 12%: 10% 0.909 0.826 0.751 0.683 0.621 Time-adjusted costs (adjusted to present value): ($60,000) ($9,091) ($9,917) ($10,518) ($10,928) ($11,177) Cumulative time-adjusted costs ($60,000) ($69,091) ($79,008) ($89,527) ($100,455) ($111,631) Benefits derived from operation $30,000 $37,500 $46,875 $58,594 $73,242 Discount factors for 12%: 10% 0.909 0.826 0.751 0.621 Time-adjusted benefits (adjusted to present value): $ $ 27,273 $ 30,992 $ 35,218 $ 40,020 $ 45,478 Cumulative time-adjusted $ 27,273 $ 58,264 $ 93,482 $ 133,503 $ 178,980 Cumulative lifetime adjusted costs + benefits: ($60,000) ($41,818) ($20,744) $3,956 $33,048 $67,349 a. What is the total cost for the system after 5 years in operation with time adjusted value? (1 pt) b. What is the estimated payback year for system? (1 pt) 0 1 0.683 C. The above table belong to which feasibility study? (2 pts) d. How would the project manager use the above information for the project approval? (2pts)