Assuming monetary benefits of an information system

Reference no: EM132452836

Question 1: Assuming monetary benefits of an information system at $85,000 per year, one-time costs of $75,000, recurring costs of $35,000 per year, a discount rate of 12 percent, and a five-year time horizon, 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?

Reference no: EM132452836

Questions Cloud

Research the rich geological history : Research the rich Geological History of how Appalachian Mountains were built and eroded away over the past ˜500 million year

Provide the link and or citation to the article : Conduct an online search for an article relating to the material (chapters) covered in the Module

What is the projects net present value : What is the project's net present value (NPV)? What is the IRR? Should the project be accepted? Why or why not? What is the net investment/initial outlay

Create a powerpoint presentation on the topic of scholarly : Create a PowerPoint presentation on the topic of scholarly writing. Be sure to use the following order of information within your presentation:

Assuming monetary benefits of an information system : Calculate the overall return on investment of the project and then present a break-even analysis. At what point does break-even occur?

Find the value of the call options held by Johnson Ltd : Johnson buys 8,500 BHP call options for $4.20 each. On 30 June 20X7, find the value of the call options held by Johnson Ltd

Discuss firm could acieve without triggering security issue : over the five year period, what is the maxium overall payout ratio the firm could acieve without triggering a securities issue?Recommend a reasonable dividend

Find the value of the equity conversion option : On 1 July 2013, comparable debt without the conversion option yields 10% per annum. Find the value of the equity conversion option on 1 July 2013

What the liability component of the convertible note : If an entity issued a convertible note at a price of $40.00. What would be the liability component of the convertible note

User Account

All Pages