1) As a systems analyst, you are preparing a new information system project proposal for management...
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1) As a systems analyst, you are preparing a new information system project proposal for management that require you to create a costs-benefits analysis prior to project presentation. Assume that the project is expected to return monetary benefits of $55,000 per year, one-time costs of $75,000, and recurring costs of $15,000 per year. The project has a discount rate of 8% and a five-year time horizon. a) Create a costs-benefits analysis spreadsheet similar to the one on page 121 in Chapter 5. (10 points) b) Calculate net present value (NPV) of benefits for each year. (10 points) c) Calculate net present value (NPV) of costs for each year. (10 points) d) Calculate overall net present value (NPV) at the end of project life. (5 points) e) Calculate overall return on investment (ROI) at the end of project life. (5 points) f) Perform break-even analysis (BEA) for the project. (5 points) g) Calculate break-even point for this project. (5 points) 1) As a systems analyst, you are preparing a new information system project proposal for management that require you to create a costs-benefits analysis prior to project presentation. Assume that the project is expected to return monetary benefits of $55,000 per year, one-time costs of $75,000, and recurring costs of $15,000 per year. The project has a discount rate of 8% and a five-year time horizon. a) Create a costs-benefits analysis spreadsheet similar to the one on page 121 in Chapter 5. (10 points) b) Calculate net present value (NPV) of benefits for each year. (10 points) c) Calculate net present value (NPV) of costs for each year. (10 points) d) Calculate overall net present value (NPV) at the end of project life. (5 points) e) Calculate overall return on investment (ROI) at the end of project life. (5 points) f) Perform break-even analysis (BEA) for the project. (5 points) g) Calculate break-even point for this project. (5 points)
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Answer rating: 100% (QA)
Sure Here is the costsbenefits analysis spreadsheet for the project you described Year Benefits Cost... View the full answer
Related Book For
Systems Analysis and Design
ISBN: 978-1133274636
9th Edition
Authors: Shelly Cashman, Gary B. Shelly and Harry J. Rosenblatt
Posted Date:
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