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Techniques and system analysis [25] 2. As an analyst, you are working on a project to implement a new system. You have been asked to
Techniques and system analysis [25] 2. As an analyst, you are working on a project to implement a new system. You have been asked to do a cost benefit analysis for this project. The relevant costs, benefits and other financial information are as follows: 1. The project life is estimated to be 5 years but could be 7 2. The operational life of the system is 10 years after implementation 3. The costs incurred - in yr 1 to 5 are: 10k, 10k, 10k, 20k and 20k, yr 6.7 - 35k 4. The benefits incurred in yr 1-5,0 in yr 6-10-15k each yr, in yr 11-15 - 25k 5. The interest rates to be used are 2.5% and 5% Perform the CBA and indicate the NPV and breakeven for the two worst case scenarios. What is your recommendation
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