For this interactive assignment, you will begin conducting a cost-benefit analysis for your proposed plan. This interactive assignment will give you an opportunity to receive guidance and feedback prior to submitting your Week 2 assignment. It is recommended that you look ahead at the Week 2 assignment requirements to assist you in completing this interactive assignment.

Choose a financial calculating model (e.g., return on investment (ROI), net present value (NPV), Cashback, payback period, etc.) and calculate the financial metrics for your project to identify project costs and estimated revenues. Monetary costs are very important when organizations invest in technology, but it should not be the only aspect when making the decision to invest. Intangible benefits such as improving employee morale, customer service, community service, and similar non-revenue generating benefits should also be part of the decision-making process and included alongside the cost-benefits analysis. Some may argue that organizations can maximize their performance if intangible benefits are considered.

Cost-Benefit Analysis Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Initial Costs Maintenance ($20.000) ($18.000) ($15.000) ($10.000) ($5.000) ; Discount Rate 1.00 0 0.909 0.826 0.751 0.683 0.621 10.0% Discounted Costs ($18.182] ($14.876] ($11.270) ($6.830] ($3.105] [Present Value] Cumulative Costs ($118.182] ($133.058] ($144.328] [#151.158) ($154.262] [Present Value] Benefit Revenue $0 $75.000 $75.000 $90.000 $125.000 $150.000 Discount Rate 1.00 0 0.909 D.826 0.751 0.683 0.621 10.0% Discounted Benefits $0 $68.182 $61.983 $67.618 $85.377 $93.138 [Present Value] Cumulative Benefits $0 $68.182 $130.165 $197.784 $283.160 $376.299 [Present Value] Cost-Benefit ($50.000) ($2.893) $53.456 $132.003 $222.036 Benefit-Cost Payback Period ($53.456) $78.547 Payback 2.32 Years Return-on-Investment +222.036 $154.262 ROI 28.79% 5 Years Net Present Value $376.299 ($154.262) NPY $222.036 Payback Analysis Year Benefit Cost Net 0 (#100.000) ($100.000) $75.000 [#20.000) | ($45.000) $75.000 (#18.000) $12.000 J W N - $90.000 $15.000) $87.000 $125.000 ($10.000) $202,000 $150.000 ($5.000) $347.000 Parback = 1.84 Years