Calculate the net present value and the ROI

Assignment Help Financial Management

Reference no: EM132065260

You will calculate the tangible and intangible costs and benefits of IS. Assume you are buying a number of personal computers (PCs) and implementing IS to monitor the traffic of people and goods in a port of entry in a specific country.

Perform the following tasks:

Estimate the possible IS costs. Justify the types of costs and amounts you have identified.

Estimate the benefits of your IS.

Calculate the net present value (NPV) and the ROI.

Present a Payback Analysis.

Note: Assume a discount rate of 12% and a 5-year time horizon.

ALSO NOTE YOU CAN COME UP WITH ANY ASSUMED DATA AND NUMBERS FROM ANYWHERE(So the issue of needed info won't be an issue).

For example

One time expense

10 Pcs @ $1500 per device

Training @ $1000 per employee/includes hourly rate and classes

Yearly costs

Integration software-Paragon ERP for 10 users @ $680/month

Write a 3- to 4-page report containing the possible IS costs and their justification.

Please include any references if need be.

Reference no: EM132065260

Questions Cloud

Discuss different ways cost-volume-profit analysis : Describe and discuss 3 different ways cost-volume-profit analysis could be useful to management

Analyze the five forces of competition : Analyze the five (5) forces of competition to determine how they impact the company.

What are the interest and principal portions : What are the interest and principal portions in the first payment? What are the interest and principal portions in the second payment?

Assume municipal bond-yield to call : Assume a municipal bond has 22 years until maturity and sells for $5,265. It has a coupon rate of 4.20 percent and it can be called in 12 years.

Calculate the net present value and the ROI : You will calculate the tangible and intangible costs and benefits of IS. Calculate the net present value (NPV) and the ROI.

What is the minimum value of bond : The conversion ratio on the bond is 15 and the stock is currently selling for $54 per share. What is the minimum value of this bond?

Operating leverage at accounting break-even point : What is the degree of operating leverage at the accounting break-even point.

Required by traditional business models : What new and changed roles and responsibilities are required of an eBusiness that is not required by traditional business models?

The outstanding mortgage balance at the lower rate : What would be the monthly saving to a homeowner from refinancing the outstanding mortgage balance at the lower rate?

User Account

All Pages