Homework Assignment 2&nbspSubmit the assignment online on Blac

Homework Assignment 2: Submit the assignment online on Blackboard using Assignments>HW2 option. No hard copysubmissions will be accepted. All assignments must be submitted by midnight on the day whenthe assignment is due i.e. by 12 midnight on Blackboard. You are given additional 10 minutes toaccount for any technological issues you might face to submit your assignment on Blackboard.After 12:10 AM, no assignment submission will be accepted and graded.Submit only MS-Word files. Please note this is an individual assignment and not a groupassignment i.e. you have to submit your responses to the questions below individually.You are NOT allowed to collaborate with your class members to work on this homeworkassignments. You can use Internet resources to do research for the assignment. You can alsoconsult with your professor regarding this homework assignments and ask for advance feedbackbefore you submit your homework. After the homework assignments have been graded, you willhave the opportunity to discuss this homework assignment in the class with your instructor.Q1. A company wishes to implement a system to support their Service Awards Program. In thisprogram, employees are given gifts and awards based on the number of years of service that they havegiven the company. This system is an expansion of an existing paper-based system that currently hasmuch inefficiency. It is the hope of the company president that a new system will provide them witheconomies of scale and reduced operating costs that will outweigh the costs of designing and buildingthe system. You have been asked to complete an economic feasibility analysis for this project.The IT department will manage the project, which is expected to take 15 weeks for requirementsanalysis and design, 10 weeks for construction and 5 weeks for implementation. The averageexpenditure per week for each of these tasks is shown in the table below.The system is expected to reduce the staffing requirements by 15% starting next year and currently,there are 30 employees in the company. HR reports that the average annual salary per full timeemployee (FTE) is currently $50K. These savings will continue for next five years. In addition, thereare expected savings resulting in better inventory management of awards and reduced handling costscharged by suppliers starting one year from now. These savings amount to $2,000 per month forinventory management and $1,800 per month for handling costs. However, the IT department expectsthe cost of its operations to increase from next year by $825 per month and general maintenance,which includes electricity, is expected to cost $145 per month in the next year, rise to $185 per monthin the following year and to $215 per month for the next three years. The new system will require theinitial expenditure of $100,000 for new equipment.TaskAverage Cost per WeekAnalysis and Design$9,280Construction$5,114Implementation$3,234Assuming the discount rate of 6% over the next five years of the project, create a five-year economicfeasibility report by year. Include the following in your report:1. Prepareatablethatindicatesyearbyyearcomputationsforbenefitsandcostsincludingtheinitial costs in the form as shown below:DetailsYear 0Year 1Year 2Year 3Year 4Year 5Economic BenefitsHR BenefitsInventory relatedbenefitsHandling costs relatedbenefitsTotal economic benefitsInitial costsRecurring costsOperationsGeneral maintenanceTotal recurring costsCompute Net Present Value, Annual Accounting Return on Investment, and Pay Back Periodfor this project. You need to show all calculations to get full credit for this question. Use theExcel format that we used in the class for practice exercises and homework assignments. Showyour calculations how you arrived at each of these three financial indicators.Based on the values of these three financial indicators, justify whether this project iseconomically feasible.Q2. You work for Scrooge and Marley Systems Developers, Inc. You have been given the task ofpreparing a Network chart for a new project to commence April 2013. You are to ignore holidays(company policy). The table below shows the tasks, durations, and dependencies required for theproject.TaskIDTaskDependencyDuration(weeks) EarlyStartLateStartSlackAGather requirementsNone3BDesign screensA1CTranslate old physicaldesign to old logical designA0.5DDesign new logicalC3ECode screensB1FInventory legacy equipmentB1GDesign new physicalD,E,F1HBuild systemF4IAcquire new equipmentF2JImplement systemH,I1The expected durations have already been calculated for you. You have to show all calculations. Simplywritingthe value will not get you full credit.DrawaPERTchartforabovetasks.YoucansubmitMS-ProjectfileshowingthePERTchart.Identifythecriticalpathfortheproject.Youhavetoidentifyitbylistingallpossiblepaths.You are not expected to use MS-Project to identify the critical path.Compute when the project will be completed (in weeks).ComputeEarlyStartandLateStartforeachactivity.Computetheslackforeachactivity.Showall calculations.IfweincreasethedurationofactivityEto3weeksfromthecurrent1weekandincreasetheduration of activity H to 7 weeks instead of 4 weeks, compute how much the project will bedelayed?Finally fill in the answers for part c in the last three columns of the above table. You still need to showthe calculations for part c separately.

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