Question: PLEASE SHOW CALCULATIONS IN EXCEL - SHOW FORMULAS USED Implementing an e-commerce website has a projected net economic benefit of $ 40,000/year during the next

PLEASE SHOW CALCULATIONS IN EXCEL - SHOW FORMULAS USED

Implementing an e-commerce website has a projected net economic benefit of $ 40,000/year during the next five years. The recurring costs of this project are $ 10,000/year, and the initial cost of implementing the website is $ 50,000. Assuming that 10 percent is the estimated discount rate, do the following:

A. Calculate the net present value of these costs and benefits

B. Calculate the overall return on investment

C. Perform a break-even analysis and estimate when the actual break-even occurs

D. Generate a graphical representation in the case that the project breaks even

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!