Scenario: A service request has been presented and you have been asked to conduct a

financial feasibility assessment of the information system based on the following scenario. The project has an evaluation time period of 4 years and a discount rate of 10%. The project will require an initial investment of $315,000 and will require $30,000 a year in maintenance costs.

The company is expected to receive $135,000 a year in benefits from the system. Your job is to evaluate the IT project based on each of the following analyses:

Return on investment (ROI)

Break-even analysis (BEA)