Final Exam Financial Analysis

Goodwill Health Clinic plans to overhaul its patient record systems. Health Record

System is a potential candidate. This system needs $$10,000$ to install. There are two cost

categories associated with system implementation: license and maintenance. The cost for

the license is $$2000$ each year for the first two years and then increase by $$200$ each year

for Year $3$ through $5.$ The maintenance cost is $$1000$ for the first year, increasing $10\%$

per year after; the expected benefits of implementing Health Record System is $$5000$ for

the first year and $$8000$ each year starting year $2.($Compute the total cost for each year:

maintenance $+$ license$)$

Organize the above information in Excel. Put your answers to each of the following

questions in Excel. Clearly label your answer.

Use a discount rate of $10\%.$ Conduct financial analysis, payback, NPV$,$ and ROI.

$1)$ What is the payback period?

$2)$ What is the NPV in year $5?$

$3)$ What is the ROI in year $5?$