• IBM Corporation is assessing the costs associated with upgrading its IT infrastructure. The estimated costs for the project are as follows:
  • Hardware Upgrade: $20,000,000
  • Software Licenses: $10,000,000
  • Employee Training: $5,000,000
  • Additionally, the project timeline is as follows:
    • Planning and Analysis: 6 months
    • Implementation: 12 months
    • Testing and Training: 3 months
  • If IBM expects the project to generate $30,000,000 in cost savings annually after completion, calculate the return on investment (ROI) and the payback period.