Assuming monetary benefits of an information system at $100,000 per year, one-time costs of $70,000, recurring costs of $50,000 per year, a discount rate of 12 percent, and a 3-year time horizon, calculate the net present value of these costs and benefits of an information system. Also calculate the overall return on investment of the project and then present a break-even analysis. At what point does break even occur? Year of Project Year 0 Year 1 Year 2 Year 3 Totals Net Economic benefit $0 $100,000 $100,000 $100,000 Discount Rate (12%) 1.0000 0.9 0.8 0.7 PV of Benefits 4 NPV of all Benefits One-Time Costs $70,000 Returring Costs $0 $50,000 $50,000 $50,000 Discount Rate (12%) 1.0000 0.9 0.8 0.7 PV of Recurring Costs NPV of all Costs Overall NPV Overall ROI Break-even Analysis Yearly NPV Cash Flow Overall NPV Cash Flow Project Break-even occurs between years and Actual Break-even occurs at years Assuming monetary benefits of an information system at $100,000 per year, one-time costs of $70,000, recurring costs of $50,000 per year, a discount rate of 12 percent, and a 3-year time horizon, calculate the net present value of these costs and benefits of an information system. Also calculate the overall return on investment of the project and then present a break-even analysis. At what point does break even occur? Year of Project Year 0 Year 1 Year 2 Year 3 Totals Net Economic benefit $0 $100,000 $100,000 $100,000 Discount Rate (12%) 1.0000 0.9 0.8 0.7 PV of Benefits 4 NPV of all Benefits One-Time Costs $70,000 Returring Costs $0 $50,000 $50,000 $50,000 Discount Rate (12%) 1.0000 0.9 0.8 0.7 PV of Recurring Costs NPV of all Costs Overall NPV Overall ROI Break-even Analysis Yearly NPV Cash Flow Overall NPV Cash Flow Project Break-even occurs between years and Actual Break-even occurs at years