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Assume that your company is planning to implement a new information system to improve its operations. For this purpose, the company top management is evaluating
Assume that your company is planning to implement a new information system to improve its operations. For this purpose, the company top management is evaluating two information systems project proposals. The costs and benefits details for the two proposals are shown in the following tables. (The marginal value of money is 5% per year) Proposal A Year Costs 380000 180000 2 200000 225000 benefit 0 250000 350000 450000 0 Proposal B Benefit 0 250000 350000 450000 Year Costs 0 520000 80000 110000 Evaluate the two proposals using the following I. Payback 2. Net present value (NPV) 3. Return on investment (ROI)
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