Question: How do I calculate the inflows and outflows for the entire 0-5 years using Internal Rate of Return (IRR) with the information below: Cash Outflows:
How do I calculate the inflows and outflows for the entire 0-5 years using Internal Rate of Return (IRR) with the information below:
Cash Outflows:
- Software Licensing:
- $87,000 over 3 years, starting in year 1
- Cloud Hosting:
- $1,250 monthly, starting year 0
- Software Maintenance/Support:
- $5,000 annually, starting year 1
- Implementation Costs:
- $75,000 year 0 only
Cash Inflows:
- Increased Revenue:
- $13,500 annually, starting in year 1
- $19,500 annually, starting year 4
- Reduces Labor Expense:
- $5,000 annually, starting in year 1
- Reduced Infrastructure Expense:
- $18,500 year 0 only
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