A new POS system will have developmental costs of $55,000. Its operating costs are $7,000 and increase by $500 each year. The benefits are $25,000 for each year. The life of the system is 5 years. The discount rate is 4%.

Create the cost/benefit spreadsheet as done in class and calculate the NPV, ROI and

payback period.

Discount factors

0.960

0.920

0.890

0.850

0.820

A new POS system will have developmental costs of $55,000. Its operating costs are $7,000 and increase by $500 each year. The benefits are $25,000 for each year. The life of the system is 5 years. The discount rate is 4%.

Create the cost/benefit spreadsheet as done in class and calculate the NPV, ROI and

payback period.

Discount factors

0.960

0.920

0.890

0.850

0.820