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)

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