Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

> D2L McGraw Hill Connect M Question 1- Ch 17 Assignn x M Question 1- Ch 17 Lecture Corsage + Boutonniere Sp Love &

image text in transcribedimage text in transcribedimage text in transcribed


> D2L McGraw Hill Connect M Question 1- Ch 17 Assignn x M Question 1- Ch 17 Lecture Corsage + Boutonniere Sp Love & Romance - Albema C chegg.com/homework-he + APUS C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsB... Ch 17 Assignment i 1 Part 1 of 2 7.69 points eBook Print References 61F Mc Graw Hill Mostly sunny Saved Required information PR 17-1 (LO 17-6) SlowRider Incorporated had a rudimentary business intelligence (BI) system. [The following information applies to the questions displayed below.] SlowRider Incorporated had a rudimentary business intelligence (BI) system. Analysts at SlowRider Incorporated pulled data from three different ERP systems, loaded the data into Excel spreadsheets, and emailed those spreadsheets to the senior managers each month. However, some managers complained that they didn't understand how to get the information they needed, others complained that the data were not accurate, and still others ignored the spreadsheets. SlowRider established a project team to look at acquiring a state-of-the-art business intelligence system. After several interviews with all the managers, the project team was ready to develop the business case. The project team estimated benefits of the new BI system as follows: 5 percent increase in sales through better-focused sales campaigns, which should increase gross margins by $200,000 in year 1 and $300,000 in years 2 and 3. 10 percent increase in inventory turnover through better purchasing, which should reduce inventory carrying costs by $100,000 in year 1 and $150,000 in years 2 and 3. The project team estimated costs over an expected 3-year life as follows: Cost Element Year 0 Year 1 Year 2 Year 3 Acquisition cost (new software and implementation) Operating cost (annual licenses, upgrades, support) Training $ 400,000 $ 50,000 $ 50,000 $ 50,000 $ 10,000 $ 5,000 $ 5,000 $ 5,000 Lost productivity during implementation Total $ 20,000 $ 430,000 $ 55,000 $ 55,000 $ 55,000 Q Search S < Prev 1 2 of 13 --- --- Next > Help Save & Exit Submit Check my work 0 9:13 AM 4/24/2024 ... > D2L Shauna Bacher - ACCT305 M Question 1- Ch 17 Assignn x D2L McGraw Hill Connect APUS 61F Sunny C Class APUS 305 Accountin M Question 1- Ch 17 Quiz - ( Desmos | Scientific Calcula + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/que... Ch 17 Assignment i Saved EJ I 0 S New Chrome available Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. 1 Risk Description Managers will not use the system, resulting in: Revenue growth of 3% Probability Mitigation Steps Top management support%3B incentives to use the system 25% Part 1 of 2 Inventory turnover increase of 5% 25% 7.69 points Mc Graw Hill PR 17-1 Part a: Disregarding the risk, calculate the payback period, NPV, IRR, and accounting rate of return (annual). Required: a. Disregarding the risk, calculate the payback period, NPV, IRR, and accounting rate of return (annual). > Answer is complete but not entirely correct. Part a: Disregarding the Risk 1. Payback period (Round to 2 decimal places.) 2. Net Present Value (NPV) (assume 10% discount rate) 3. Internal Rate of Return (IRR) 4. Accounting rate of return (annual) (Round to 2 decimal places.) Answer 1.00 years $ 25,942.15 x 19.98% 20.56% Q Search S --- < Prev 1 2 of 13 --- Next > Return to question 9:49 AM 4/25/2024 > D2L Shauna Bacher - ACCT305 M Question 2 - Ch 17 Assign x D2L McGraw Hill Connect APUS C Class APUS 305 Accountin M Question 1- Ch 17 Quiz - ( Desmos | Scientific Calcula + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/que... Ch 17 Assignment i 2 Part 2 of 2 Saved EJ I 0 S New Chrome available Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Risk Description Probability Mitigation Steps Managers will not use the system, resulting in: Top management support; incentives to use the system Revenue growth of 3% 25% Inventory turnover increase of 5% 25% 7.69 points PR 17-1 Part b: Considering the risk, calculate the payback period, NPV, IRR, and accounting rate of return (annual). 61F Sunny Mc Graw Hill Required: b. Considering the risk, calculate the payback period, NPV, IRR, and accounting rate of return (annual). Answer is not complete. Answer 1.00 years Part b. Considering the Risk 1. Payback period (Round to 2 decimal places.) 2. Net Present Value (NPV) (assume 10% discount rate) 3. Internal Rate of Return (IRR) 4. Accounting rate of return (annual) (Round to 2 decimal places.) 20% 3.72 % Q Search < Prev 2 GN of 13 Next > Return to question 9:50 AM 4/25/2024

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Financial Management

Authors: Brigham, Daves

10th Edition

978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573

More Books

Students also viewed these Finance questions

Question

Describe effectiveness of reading at night?

Answered: 1 week ago

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago