Question
Assuming monetary benefits of an information system at $100 at Year 1, $200 at Year 2, and $300 at Year 3, one-time costs of $150,
Assuming monetary benefits of an information system at $100 at Year 1, $200 at Year 2, and $300 at Year 3, one-time costs of $150, recurring costs of $15 per year, a discount rate of 10 percent, and a three-year time horizon, please fill in the cost-benefit analysis table below. Each blank is worth 4 points except for (15) and (24) which is worth 6 points each.
Requirement:
1. In the first round of calculation, you should keep 2 decimal places for every calculation result and use the value with 2 decimal places to conduct further calculation.
2. Once you completed the calculation for every blank, then round each number to its integer value and fill the integer value to the corresponding blank. The only exceptions are (15) and (24). You can keep 2 decimal places for these two blanks.
I have attached the chart above, please follow requirements and fill in chart. Thanks, greatly appreciated
Year 0 Year 1 Year 2 Year 3 Benefit $0 $100 $200 $300 PV of Benefit $0 (1) (2 ) (3) NPV of all benefits $0 (4) (5) (6) One-time Cost $150 NA NA N/A Recurring Cost $0 $-15 $-15 $-15 PV of Recurring Cost $0 (7) (8) (9) NPV of all costs (10) (11) (12) (13) Overall NPV (14) ROI (15) Yearly NPV cash flow (16) (17) (18) (19) NPV Cash Flow (20) (21) (22) (23) Break-Even Point (24)Step by Step Solution
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