Assuming monetary benefits of an information system at $85,000 per year, one-time costs of $75,000, recurring costs of $
Posted: Mon Jun 06, 2022 5:12 pm
Assuming monetary benefits of an information system at
$85,000 per year, one-time costs of $75,000, recurring costs
of $35,000 per year, a discount rate of 12 percent, and a
five-year time horizon, calculate the net present value of
these costs and benefits of an information system. Also
calculate the overall return on investment of the project
and then present a break-even analysis. At what point does
breakeven occur?
Redo the same problem with a discount rate of 5 per
cent.
Please show the calculations with exact
definitions
do the problem with 5% of discount rate not
12%
$85,000 per year, one-time costs of $75,000, recurring costs
of $35,000 per year, a discount rate of 12 percent, and a
five-year time horizon, calculate the net present value of
these costs and benefits of an information system. Also
calculate the overall return on investment of the project
and then present a break-even analysis. At what point does
breakeven occur?
Redo the same problem with a discount rate of 5 per
cent.
Please show the calculations with exact
definitions
do the problem with 5% of discount rate not
12%