Question: Repeat the previous problem - this time using monetary benefits of an information system at $25,000 per year (beginning in year 1), one-time costs of

Repeat the previous problem - this time using monetary benefits of an information system at $25,000 per year (beginning in year 1), one-time costs of $35,000, recurring costs of $20,000 per year.

This time, assume a discount rate of 11%, and 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 break-even occur?

Instructions:

1) Download the BEA_Worksheet Download BEA_Worksheetfile here (click the link).

2) Fill in the worksheet and upload when done.

3) Explain where the Break-Even point is, and how you know that.

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