century wellness group chapter 7 from structured analysis and design

( I wrote the whole thing so you can have an idea abou the question as a whole. i just need answer for question number 4)
Capstone case:New century wellness group
New Century Wellness Group offers a holistic approach to healthcare with an emphasis onpreventive medicine as well as traditional medical care. In your role as an IT consultant you willhelp New Century develop a new information system.
Background
Based on your earlier recommendations New Century decided to continue the systems development process for a new information system. Now at the end of the systems analysis phase you are ready to prepare a system requirements document and give a presentation to the New Centuryassociates. Many of the proposed system’s advantages were described during the fact-finding process. Those include smoother operation better efficiency and more user-friendly procedures forpatients and New Century staff.
You also must examine tangible costs and benefits to determine the economic feasibility of
several alternatives. If New Century decides to go ahead with the development process the mainoptions are to develop the system in-house or purchase a vertical package and configure it to meetNew Century’s needs. You have studied those choices and put together some preliminary figures.
You know that New Century’s current workload requires six hours of office staff overtime perweek at a base rate of S15 per hour. In addition based on current projections New Century willneed to add another full-time clerical position in about six months. Neither the overtime nor theadditional job will be needed if New Century implements the new system. The current manualsystem also causes an average of three errors per day and each error takes about 20 minutes tocorrect. The new system should eliminate those errors.
You estimate that by working full-time you could complete the project in a bout 12 weeks.
Your consulting rate which New Century agreed to is $35 per hour. If you design the new system as a data base application you can expect to spend about $2500 for a networked commercialpackage. After the system is operational and the staff is t rained New Century should be able tohandle routine maintenance tasks without your assistance.
As an alternative to in-house development a vertical software package is available for about
$12000. The vendor offers a lease-purchase package of S4000 down followed by two annual installments of $4000 each. If New Century buys the package it would take you about four weeks to install configure and test it working full-time. The vendor provides free support during the first year of operation but then New Century must sign a technical support agreement at an annual cost of S600. Although the package contains many of the features that New Century wants most of the reports are pre-designed and it would be difficult to modify their Iayouts.
No matter which approach is selected New Century probably will need you to provide about10 hours of initial training and support each week for the first three months of operation. Afterthe new system is operational it will need routine maintenance file backups and updating. These tasks will require about four hours per week and can be performed by a clinic staff member. Inboth cases the necessary hardware and network installation will cost about S12500.
In your view the useful life of the system will be about five years including the year in which the system becomes operational.
You are scheduled to deliver a presentation to New Century next week and you will submit a system requirements document at that time. To prepare yourself you reviewed the skills described in Part A of the Systems Analyst’s Toolkit and you listed tips to remember as follows:
Presentation Tips
Use suitable visual aids.
Use presentation software if possible.
Distribute handouts before during or after the presentation.
Follow the guidelines in Part A of the Systems Analyst’s Toolkit.
Keep your presentation to 30 minutes including 5 minutes for questions.
System Requirements Document Tips
Follow the guidelines in Part A of the Systems Analyst’s Toolkit.
Include charts graphs or other helpful visual information in the document. Also include
other material to help the audience understand the new system and decide on the next step.
Spell check and carefully proofread the entire document.
For readability t ry to keep the Flesch Reading Ease score above 60 and aim for a FleschKincaid
Grade Level of 8.0 to 9.0.
Tasks
1. Provide an overview of the proposed system including costs and benefits with an explana
tion of the various cost-benefit types and categories.
2. Develop an economic feasibility analysis using payback analysis ROI and present value
(assume a discount rate of 10%).
3. Prepare a context diagram and diagram 0 for the new system.
4. Provide a brief explanation of the various alternatives that should be investigated if developmentcontinues including in-house development and any other possible strategies.