Please help me with this question. Assume the following facts: A project will cost $ 45,000 to develop. When the system becomes operational, after a one- year development period, operational costs will be $ 9,000 during each year of the system?s five- year useful life. The system will produce benefits of $ 30,000 in the first year of operation, and this figure will increase by a compound 10% each year. What is the payback period for this project?

Payback Analysis Template Note: Cells C8:C14 and E8:E14 contain formulas to accumulate costs and benefits Assume the following facts: A project will cost $ 45,000 to develop. When the system becomes operational, after a one- year development period, operational costs will be $ 9,000 during each year of the system's five- year useful life. The system will produce benefits of $ 30,000 in the first year of operation, and this figure will increase by a compound 10% each year. What is the payback period for this project? Year Costs 0 1 2 3 4 5 (45,000) (9,000) (9,000) (9,000) (9,000) (9,000) Cumulative Costs (45,000) (54,000) (63,000) (72,000) (81,000) (90,000) Benefits 30,000 33,000 36,300 39,930 43,923 Cumulative Benefits (45,000) (15,000) 18,000 54,300 94,230 138,153 Your Solution: Year Cash outflow Cash inflow Net cash flow 0 1 2 3 4 5 -45,000 -9,000 -9,000 -9,000 -9,000 -9,000 30,000 33,000 36,300 39,930 43,923 -45,000 27,000 24,000 27,300 30,930 34,923 Cumulative cash flows -45,000 -18,000 6,000 33,300 64,230 99,153 Payback Analysis Template Note: Cells C8:C14 and E8:E14 contain formulas to accumulate costs and benefits Assume the following facts: A project will cost $ 45,000 to develop. When the system becomes operational, after a one- year development period, operational costs will be $ 9,000 during each year of the system's five- year useful life. The system will produce benefits of $ 30,000 in the first year of operation, and this figure will increase by a compound 10% each year. What is the payback period for this project? Year Costs 0 1 2 3 4 5 (45,000) (9,000) (9,000) (9,000) (9,000) (9,000) Cumulative Costs (45,000) (54,000) (63,000) (72,000) (81,000) (90,000) Benefits 30,000 33,000 36,300 39,930 43,923 Cumulative Benefits (45,000) (15,000) 18,000 54,300 94,230 138,153 Your Solution: Year Cash outflow Cash inflow Net cash flow 0 1 2 3 4 5 -45,000 -9,000 -9,000 -9,000 -9,000 -9,000 30,000 33,000 36,300 39,930 43,923 -45,000 27,000 24,000 27,300 30,930 34,923 Cumulative cash flows -45,000 -18,000 6,000 33,300 64,230 99,153 Payback Analysis Template Note: Cells C8:C14 and E8:E14 contain formulas to accumulate costs and benefits Assume the following facts: A project will cost $ 45,000 to develop. When the system becomes operational, after a one- year development period, operational costs will be $ 9,000 during each year of the system's five- year useful life. The system will produce benefits of $ 30,000 in the first year of operation, and this figure will increase by a compound 10% each year. What is the payback period for this project? Year Costs 0 1 2 3 4 5 (45,000) (9,000) (9,000) (9,000) (9,000) (9,000) Cumulative Costs (45,000) (54,000) (63,000) (72,000) (81,000) (90,000) Benefits 30,000 33,000 36,300 39,930 43,923 Cumulative Benefits (45,000) (15,000) 18,000 54,300 94,230 138,153 Your Solution: Year Cash outflow Cash inflow Net cash flow 0 1 2 3 4 5 -45,000 -9,000 -9,000 -9,000 -9,000 -9,000 30,000 33,000 36,300 39,930 43,923 -45,000 27,000 24,000 27,300 30,930 34,923 Cumulative cash flows -45,000 -18,000 6,000 33,300 64,230 99,153