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***Please use excel for this*** Assume monetary benefits of an information system of $40,000 the first year and increasing benefits of $10,000 a year for
***Please use excel for this***
Assume monetary benefits of an information system of $40,000 the first year and increasing benefits of $10,000 a year for the next five years (year 1=$50,000, year 2= $60,000, year 3 = $70,000, year 4= $80,000, year 5 = $90,000). One- time development costs were $80,000 and recurring costs were $45,000 over the duration of the system's life. The dis- count rate for the company was 11 percent. Using a six-year time horizon, calculate the net present value of these costs and benefits. Also calculate the overall return on investment and then present a break-even analysis. At what point does breakeven occurStep by Step Solution
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