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Assume monetary benefits of a new automated dental office scheduling and billing system of $200,000 in the first year and increasing incremental benefits of $25,000
Assume monetary benefits of a new automated dental office scheduling and billing system of $200,000 in the first year and increasing incremental benefits of $25,000 a year for the next 3 years. There is a monthly cost for cloud hosting services of $10,000. There are annual license fees of $100/user. There will be fifty users for the life of the system. The initial software purchase has a one-time purchase cost of $100,000 in year zero. The system will go-live at the start of the first year. The discount rate that the finance manager for the office has asked you to use is 10%. You MUST use the discount on the class spreadsheet provided. Please show your work and not just the answer. a) Using a five-year horizon (current plus four), calculate the net present value of this project. b) Calculate the overall ROI for the new dental office system. c) Identify the Payback period
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