Question: Problem 1. Implementing an e-commerce website has a projected net economic benefit of $ 45,000 / year during the next five years. The recurring costs

Problem 1.

Implementing an e-commerce website has a projected net economic benefit of $ 45,000 / year during the next five years. The recurring costs of this project are $9,000 per year, and the initial cost of implementing the website is $ 40,000. Assuming that 10 percent is the estimated discount rate, do the following:

  1. Calculate the net present value of these costs and benefits
  2. Calculate the overall return on investment
  3. Perform a break-even analysis and determine when the actual break-even occurs. Show the calculations (in Excel).
  4. Generate a graphical representation in the case that the project breaks even

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