Question
Use MS Excel to develop a five-years (5 years) cashflow table for the below projects. Project 1: A Sales Management System (SMS) Implementation project that
Use MS Excel to develop a five-years (5 years) cashflow table for the below projects. Project 1: A Sales Management System (SMS) Implementation project that will yield a possible annual 5% increase in sales and 7% reduction in the salesforce personnel (labor) cost. Sales and labor figures are 500,000 JOD and 350,000 JOD respectively. The hardware setup cost of the project is estimated to be 22,000 JOD and Software Licenses are estimated to cost 120,000 JOD. Project 2: A Mobile App development project to help in the organization outreach, it is expected to result in 7% increase in sales on an annual basis and 6% reduction in labor costs also annually. Sales and labor figures are 575,000 JOD and 375,000 JOD respectively. The training cost is estimated to be 10,000 JOD, the hardware setup cost of the project is estimated to be 38,000 JOD, and Software development is estimated to cost 90,000 JOD. Project 3: A Client Engagement and Management System (CEMS) development project, the project is expected to result in an increase of 6% in sales for the first year and then increasing by 1% annually for the remaining life of the project, it is also expected to result in 5% reduction in labor costs. Sales and labor figures are 400,000 JOD and 500,000 JOD respectively. The hardware setup cost of the project is estimated to be 28,000 JOD, and Software development is estimated to cost 120,000 JOD. 2022-2023 Faculty of Information Technology (FIT), Applied Science Private University, Amman, Jordan. 2 QUESTION 2: [5 POINTS] For the developed Cash Flow Table (from question 1), and by considering an interest rate of 8%, calculate the values of the following metrices: 1. Net Profit (NP) 2. Payback Period (PBP) 3. Return on Investment (ROI) 4. Net Present Value (NPV), and 5. Internal Rate of Return (IRR).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started