Question
AuditingsoftwareNewsoftwareandtrainingcosts$775,000.Thesoftwarewillreducetravel,manualdocument controlandauditorefficiency.Currentlytheorganizationcompletes120auditsannuallywitheachaveraging80 hoursoftotalauditortimeincludingtravel,documentationandfiling.Thenewsoftwarewillreduceauditor hoursby10%onaverageperaudit.Thecostbyhourofeachauditorwithburdenis$150. BasicROI=Netbenefit/TotalCost(usea3yearmodel) PaybackPeriod=InitialInvestment/CashInflowperPeriod NetPresentValueNPV(rate,value1,[value2],...)Use10%discountrate. InternalRateofReturnIRR(values,[guess]) I need this in excel with net cash flow included.
AuditingsoftwareNewsoftwareandtrainingcosts$775,000.Thesoftwarewillreducetravel,manualdocument controlandauditorefficiency.Currentlytheorganizationcompletes120auditsannuallywitheachaveraging80 hoursoftotalauditortimeincludingtravel,documentationandfiling.Thenewsoftwarewillreduceauditor hoursby10%onaverageperaudit.Thecostbyhourofeachauditorwithburdenis$150.
BasicROI=Netbenefit/TotalCost(usea3yearmodel)
PaybackPeriod=InitialInvestment/CashInflowperPeriod
NetPresentValueNPV(rate,value1,[value2],...)Use10%discountrate.
InternalRateofReturnIRR(values,[guess])
I need this in excel with net cash flow included.
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