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Assume monetary benefits of an information system of a company at $50,000 the first year and an increasing benefit of $5,000 per year. The one-time
Assume monetary benefits of an information system of a company at $50,000 the first year and an increasing benefit of $5,000 per year. The one-time development costs were $90,000 and recurring costs were $25,000 per year. Given a discount rate of 10% and a five-year time horizon, calculate the net present value of these costs, benefits and the overall net present value. Calculate the return on investment and present the break-even analysis. At what point does the breakeven occur?
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