Question: Given : 2013 2014 2015 2016 2017 Benefits - Increase sales 250,000 265,000 280,900 297,754 Reduction in customer complaint 35,000 35,000 35,000 35,000 Reduced inventory
Given :
|
| 2013 | 2014 | 2015 | 2016 | 2017 |
|
| Benefits |
|
|
|
|
|
|
| - Increase sales |
| 250,000 | 265,000 | 280,900 | 297,754 |
|
| Reduction in customer complaint |
| 35,000 | 35,000 | 35,000 | 35,000 |
|
| Reduced inventory costs |
| 34,000 | 34,000 | 34,000 | 34,000 |
|
|
|
|
|
|
|
|
|
| Development Cost |
|
|
|
|
|
|
| Server | 125,000 | 0 | 0 | 0 | 0 |
|
| Printer | 50,000 | 0 | 0 | 0 | 0 |
|
| Software license | 17,412.50 | 0 | 0 | 0 | 0 |
|
| Server Software | 5,472.50 | 0 | 0 | 0 | 0 |
|
| Development Labor | 618,262.50 | 0 | 0 | 0 | 0 |
|
| Total Development Cost | 816,147.50 | 0 | 0 | 0 | 0 |
|
|
|
|
|
|
|
|
|
| Operational Cost |
|
|
|
|
|
|
| Hardware |
| 25,000 | 25,000 | 25,000 | 25,000 |
|
| Software |
| 10,000 | 10,000 | 10,000 | 10,000 |
|
| Operational Labor |
| 57,500 | 59,800 | 62,192 | 64,679.50 |
|
| Total Operational Cost |
| 92,500 | 94,800 | 97,192 | 99,679.50 |
ANSWER THE FOLLOWING:
1) What is the total benefits from year 2013 to 2017 ?
2) How much is the total cost from year 2013 to 2017 ?
3) What is the computed ROI ?
4) For Break Even, costs will be fully recovered in ____ year(s)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
