Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer all parts of 1 and show and explain work. Initial The Numbers Scenario 1 Annual Benefits Direct Indirect Total Benefits per period Yri

Please answer all parts of 1 and show and explain work. image text in transcribed
Initial The Numbers Scenario 1 Annual Benefits Direct Indirect Total Benefits per period Yri 26,000 2,279,729 2,305,729 Yr2 Yr3 26,000 26,000 2,279,729 2,279,729 2,305,729 2,305,729 Yri Yr2 Yr3 Depreciation Schedule Software Hardware Total Depreciation per period Acquisition 200,000 24,000 224,000 40,000 5,000 45,000 40,000 5,000 45,000 40,000 5,000 45,000 Initial Yr1 Yr2 30,000 5,000 Yr3 30,000 5,000 30,000 5,000 Expensed Costs Software Hardware Consulting Personnel Training Other Total Costs per period 45,000 64,000 20,981 100,000 100,000 100,000 129,981 135,000 135,000 135,000 Assumptions: 15% discount rate Case Questions 1. Calculate the following: a. Annual ROI b. Total Cost of ownership c. Average annual cost of ownership d. Net present value in year 3 e. Payback period 2. Would you make the investment? Discuss

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

Basic Finance An Introduction To Financial Institutions, Investments And Management

Authors: Herbert B Mayo

9th Edition

0324322291, 9780324322293

More Books

Students also viewed these Finance questions

Question

4.1 Explain multiple uses of job analysis in HR decisions.

Answered: 1 week ago