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Consider the following case then answer the questions below it (i to vi) Noman was working to develop a preliminary cost-benefit analysis for a
Consider the following case then answer the questions below it (i to vi) Noman was working to develop a preliminary cost-benefit analysis for a new client- server system. He has identified a number of cost factors and values for the new system, summarized project's cash flow in the following tables: yo Total Benefits Total Costs yl y2 y3 total 45,000 50,000 57,000 100,000 10.000 12,000 16.000 Using this information, i. Calculate Net benefits and cumulative net benefits ii. Compute the project's ROI and iii. break-even point iv. Compute the present value of the cash flows. (4 marks) (3marks) (3 marks) (4 marks) yroom App v. What is the NPV for this project? (4 marks) vi. Should this project be accepted by the approval committee? (2 marks)
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