Question: Please use Excel and insert the answer in a table I will be able to copy. Thank you! Q2: Economic feasibility analysis: A. Consider the
Q2: Economic feasibility analysis: A. Consider the benefits of developing an information system at $55,000 per year, one- time costs of $40,000, recurring costs of $30,000 for first four years and recurring costs of $35,000 for years 5th to 8th, a discount rate of 8 percent, and an 8-years' time horizon, calculate the net present value of these costs and benefits of an information system. Also calculate the overall return on investment of the project and then present a break-even analysis. At what point does breakeven occur? B. Change the discount rate to 10 percent, the recurring costs to $35,000 for all years and redo the analysis. (All calculations of annually variables are included in the answer & Preferably Excel format)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
