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Assuming the monetary benefits of an information system project are $ 8 5 , 0 0 0 per year, one - time costs of $

Assuming the monetary benefits of an information system project are $85,000 per
year, one-time costs of $75,000, recurring costs of $35,000 per year, a discount rate
of 12% and a five-year time horizon, calculate the net present value of these costs and
benefits. Also calculate the overall return on investment of the project and the also
calculate the break-even analysis. At what point does break-even occur? What would
be your recommendation for this project and why?

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