EXERCISE 2: Cost and Benefit Analysis Techniques

Assuming economic benefits of an information system at $95,000 at year 1, $125,000 at year 2, and $145,000 at year 3, development costs are $235,000 and operating costs are $15,000 at year 1, $16,000 at year 2, and $18,000 at year 3, a discount rate of 5%, and a 3-year time horizon,

1. net present value (NPV)?
2. ROI?
3. break-even point (BEP)?

Please show all work.