Question: You have been asked to calculate the PAYBACK and ROI for the proposed implementation of an CRM system. The costs are as follows: Initial Consulting

You have been asked to calculate the PAYBACK and ROI for the proposed implementation of an CRM system. The costs are as follows: Initial Consulting Fee $200,000. Software Licensing Fee will cost an initial amount of $3.5 million. Subsequently, there will be a yearly maintenance amount of 20% of the initial amount. This yearly maintenance fee is expected to increase by 10% every year. There will also be ongoing maintenance costs of $100,000. This cost will remain constant for the next 5 years. It is forecasted that the benefits will be $2 million at the end of year 1 and year 2. Benefits will increase by $900,000 every subsequent year thereafter. You have been asked to calculate the PAYBACK and ROI for the proposed implementation of an CRM system. The costs are as follows: Initial Consulting Fee $200,000. Software Licensing Fee will cost an initial amount of $3.5 million. Subsequently, there will be a yearly maintenance amount of 20% of the initial amount. This yearly maintenance fee is expected to increase by 10% every year. There will also be ongoing maintenance costs of $100,000. This cost will remain constant for the next 5 years. It is forecasted that the benefits

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