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Calculate the following for System A & B calculate :(Please show work in excel and formulas) PV Costs PV Benefits Benefit Cost ratio NPV of
Calculate the following for System A & B calculate:(Please show work in excel and formulas)
PV Costs
PV Benefits
Benefit Cost ratio
NPV of Benefits
Using the table below:
Discount rate 0.08
System A | Year | 0 | 1 | 2 | 3 | |
Costs | ||||||
Hardware | $22,000 | $2,000 | $2,000 | $2,000 | ||
Software | $10,000 | $2,000 | $2,000 | $2,000 | ||
Services | $2,000 | $1,500 | $1,500 | $1,500 | ||
Benefits | ||||||
Increased Productivity | $15,000 | $10,000 | $8,000 | |||
Lower Error Rates | $15,000 | $5,000 | $5,000 | |||
System B | Year | 0 | 1 | 2 | 3 | |
Costs | ||||||
Hardware | $7,000 | $2,000 | $3,000 | $1,000 | ||
Software | $15,000 | $5,000 | $5,000 | |||
Services | $5,000 | $2,000 | $2,000 | $2,000 | ||
Benefits | ||||||
Increased Productivity | $9,000 | $15,000 | $10,000 | |||
Lower Error Rates | $15,000 | $4,000 | $8,000 |
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