Question: (SAD) The table below is a payback analysis of a Travel Booking System for Gombak Travel Agent Company. Payback Analysis for a Project Cash flow
(SAD)
The table below is a payback analysis of a Travel Booking System for Gombak Travel Agent Company. Payback Analysis for a Project Cash flow description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Development cost: ($60,000) Operation cost: $ (10,000) $ (12,000) $ (14,000) $ (16,000) $ (18,000) Discount factors for 12%: 10% 1 0.909 0.826 0.751 0.683 0.621 Time-adjusted costs (adjusted to present value): ($60,000) ($9,091) ($9,917) ($10,518) ($10,928) ($11,177) Cumulative time-adjusted costs ($60,000) ($69,091) ($79,008) ($89,527) ($100,455) ($111,631) Benefits derived from operation 0 $30,000 $37,500 $46,875 $58,594 $73,242 Discount factors for 12%: 10% % 1 0.909 0.826 0.751 0.683 0.621 Time-adjusted benefits (adjusted to present value): $ $ $ 27,273 $ 30,992 $ 35,218 $ 40,020 $ 45,478 Cumulative time-adjusted $ $ 27,273 $ 58,264 $ 93,482 $ 133,503 $ 178,980 Cumulative lifetime adjusted costs + benefits: ($60,000) ($41,818) ($20,744) $3,956 $33,048 $67,349 a. What is the price tag for the Travel Booking System? (1 pt) b. What is the estimated payback year for system? (1 pt) C. The above table belong to which feasibility study? (1 pt) d. List two items that is part of development cost (2 pts) e. List one tangible benefits that can be derived from system (1 pt)
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