Question One

Suppose a system is developed in Year 0 (the current year) costing $100,000. Once the system is operational, benets and ongoing costs are projected over a period of three years according to the table shown below:

Year 0 Year 1 Year 2 Year 3 Total

Total Benefits 45,000 50,000 57,000 ?

Total Costs 100,000 10,000 12,000 16,000 ?

a. Calculate the total benefits over the duration of three years.

b. Calculate the total costs over the duration of three years.

c. Calculate the return on investment.

Please type the solutions on the keyboard

Question One 1 Mark Suppose a system is developed in Year 0 (the current year) costing S100,000. Once the system is operational, benefits and ongoing costs are projected over a period of three years according to the table shown below: Year Year IYear 2 Year 3 45,00050,00057,000 100,00010,00012,000 16,000 Total Total Benefits Total Costs a. Calculate the total benefits over the duration of three years. b. Calculate the total costs over the duration of three years. c. Calculate the return on investment