You are responsible to manage an IS project with a 4-year horizon. The annal cost of the project is estimated at $40,000 per year, and a one-time costs of $120,000. The annual monetary benefit of the project is estimated at $96,000 per year with a discount rate of 6 percent.

a. Calculate the overall return on investment (ROI) of the project.

b. Perform a break-even analysis (BEA). At what year does break-even occur?