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Two new production scheduling information systems for Ferro Corporation could be developed at a cost of $105,000 and $135,000 respectively. Interest rate is 15%. The
Two new production scheduling information systems for Ferro Corporation could be developed at a cost of $105,000 and $135,000 respectively. Interest rate is 15%. The estimated net operating costs and estimated net benefits over five years of operation would be: Project A Estimated Net Operating Costs Estimated Net Benefits 0 $26,000 34,000 $41,000 $55,000 Year 105,000 3,500 S 4,700 S5,500 S 6,300 7,000 0 4 66,000 Project B Estimated Net Benefits $12,500 $21,500 $32,300 35,300 $44,100 $61,000 Year Estimated Net ating Costs S 135.000 $ 3,800 $ 4,900 $ 5,800 6,700 7,800 0 4 .Calculate payback period (PBP), net present value (NPV), and internal rate of return (IRR). . Which project do you recommend for development? Support your recommendation. .Please use the provided Excel template for this assignment . Note: Interest Rate = (s+ p:) = 15%
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