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As a systems analyst, you are preparing a new information system project proposal for management that require you to create a costs - benefits analysis
As a systems analyst, you are preparing a new information system project proposal for
management that require you to create a costsbenefits analysis prior to project presentation.
Assume that the project is expected to return monetary benefits of $ per year, onetime
costs of $ and recurring costs of $ per year. The project has a discount rate of
and a fiveyear time horizon.
a Create a costsbenefits analysis spreadsheet similar to Figure in Chapter points
b Calculate net present value NPV of benefits for each year. points
c Calculate net present value NPV of costs for each year. points
d Calculate overall net present value NPV at the end of project life. points
e Calculate overall return on investment ROI at the end of project life. points
f Perform breakeven analysis BEA for the project. points
g Calculate breakeven point for this project.
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