Using the given question to do the financialfeasibility
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IT Project Management Subject Using the given question to do the financial feasibility
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IT Project Management Subject Using the given question to do the financial feasibility
IT Project Management Subject
Using the given question to do the financialfeasibility
1. 2. 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? Assume monetary benefits of an information system of $40,000 the first year and increasing benefits of $10,000 a year for the next five years (year 1 = $50,000, year 2=$60,000, year 3 = $70,000, year 4 = $80,000, year 5 = $90,000). One- time development costs were $80,000 and recurring costs were $45,000 over the duration of the system's life. The dis- count rate for the company was 11 percent. Using a six-year time horizon, calculate the net present value of these costs and benefits. Also calculate the overall return on investment and then present a break-even analysis. At what point does breakeven occur?
Using the given question to do the financialfeasibility
1. 2. 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? Assume monetary benefits of an information system of $40,000 the first year and increasing benefits of $10,000 a year for the next five years (year 1 = $50,000, year 2=$60,000, year 3 = $70,000, year 4 = $80,000, year 5 = $90,000). One- time development costs were $80,000 and recurring costs were $45,000 over the duration of the system's life. The dis- count rate for the company was 11 percent. Using a six-year time horizon, calculate the net present value of these costs and benefits. Also calculate the overall return on investment and then present a break-even analysis. At what point does breakeven occur?