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system analysis = Q4 (50 points = 5 marks]: Assume monetary benefits of an information system of $40,000 the first year and increasing benefits of
system analysis
= Q4 (50 points = 5 marks]: 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 discount rate for the company was 11 percent. a) Using a six-year time horizon, calculate the net present value of these costs and benefits. Also, calculate the overall return on investment (ROI) and then present a break-even analysis. At what point does break-even occurStep by Step Solution
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