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1. Computer support services currently cost ABC corporation $100,000 per year. Next World Computer services has proposed to provide these same computer support services to

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1. Computer support services currently cost ABC corporation $100,000 per year. Next World Computer services has proposed to provide these same computer support services to ABC corporation for $80,000 per year. There is a one-time cost of $75,000 associated with transferring the files and training staff. a. What is the investment amount? Answer: Total Investment =$ b. What are the annual benefits? Answer: Current Annual Cost New Annual Cost Annual Savings c. What are the total profits over five years? Show the formula and your work. Answer: \$ d. What is the ROI over five years? Show the formula and your work. Answer: ROI Formula ROI= % e. What is the Payback Period? Show the formula and your work. Answer: Payback Period Formula = Payback Period = years

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