Question
A software product takes US $50,000.00 for development. Once developed and delivered the maintenance cost is US $400.00 per month for first two years and
A software product takes US $50,000.00 for development. Once developed and delivered the maintenance cost is US $400.00 per month for first two years and US $500.00 per month after 2 years.
Once delivered the expected revenue from the product is US $2000.00 per month for first two years and US $3000.00 per month after 2 years.
1) What is the Return on investment for this product in 5 years?
2) In how many months approximately does the product become profitable?
3) Based on your answer in 2) do you think this product is economically feasible? Justify your answer in one or two lines.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started