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Assume monetary benefits of an information system of $40,000 the first year and increasing benefits of $10,000 a year for the next five years (year
Assume monetary benefits of an information system of $40,000 the first year and increasing benefits of $10,000 a year for the next five years (year 1=$50,000, year 2=$60,000, year 3=$70,000, year 4=$80,000, year5 =$90,000 ). One time delevopment costs were $80,000 and recurring costs were $45,000 over the duration of the system's life. The discount rate for the company was 11 percent. Using a six-year time horizon, calculate the Net Present Value of these costs and benefits. Also, calculate the overall return on investment and then present a break-even analysis. At what point does break-even occur? Midterm-Tonya Underwood - Saved File Home Insert Page Layout Formulas Data Review View Help NPV of all costs $(80,000.00) 32 33 Overall NPV 34 Overall ROI. 36 37 Break-Even Analysis 38 Yearly NPV Cash Flow Overall NPV Csb Hlow. 40 41. Breakeven oecurs between: 42 Use first year of positive cash flow to detrmin break-even fraction 43 Actual break even 44 years please widen columns if necessary to make data in all cells visible
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