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A new IS project has been proposed that will produce not only cost savings but also an increase in revenue. The initial costs to establish
A new IS project has been proposed that will produce not only cost savings but also an increase in revenue. The initial costs to establish the system are estimated to be $500,000. The remaining cash flow is presented in the following table. Using a spreadsheet program, calculate the return on investment (ROI) (or this project. Assume that the cost of capital is 7 percent. How would the rate of return change if the project delivered $50,000 in additional revenue and generated cost savings of $25,000 in the first year
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