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青山 素子 青山 素子
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8 years ago
Consider the following scenario of tangible costs and benefits for a systems development project. Estimated development time is one year, and the one-time development cost is $9000. Each year after that, maintenance and usage costs are $4000. The estimated benefits after the system is developed are $8000 per year. Note that these estimates are based on today's dollar values. Assume a discount rate of 10% per year on the time value of money.

Based on the above scenario, calculate the net present value for benefits and costs over a five year time horizon (calculate NPV for each year). Then determine the return on investment after this time period. Finally, determine the break-even point. Show your work.
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Object-Oriented System Analysis and Design

Object-Oriented System Analysis and Design


Edition: 1st
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fierofiero
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青山 . Author
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8 years ago
Well answered, marking this question solved
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8 years ago
Happy to have assisted Slight Smile
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