Question
You are the systems analyst for Jones and Baringer Associates, a company that provides market analysis data for organizations intending to expand their operations in
You are the systems analyst for Jones and Baringer Associates, a company that provides market analysis data for organizations intending to expand their operations in developing nations.
As the systems analyst, you are in the process of assessing economic feasibility of a proposed Information Systems (IS) project. You have determined the following regarding the IS project:
Yearly benefits: $85,000
One-time costs: $75,000
Recurring costs: $35,000
Discount rate: 12%
Time frame: 5 years.
Calculate the following:
1. Net Present Value (NPV) of costs and benefits.
2. Overall Return on Investment (ROI)
3. Break even analysis. At what year will the investment break even?
This is an individual assignment. Submit your work in a well formatted word document. Include table of your calculations and a paragraph explaining why you think the company should or should not continue with the project.
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