Solution-Determine the npv, An information system will cost

Determine the npv

Assignment Help Management Information Sys

Reference no: EM132067196

Turn to Part C of the Systems Analyst's Toolkit and review the concept of net present value (NPV).

Determine the NPV for the following:

An information system will cost $95,000 to implement over a one-year period and will produce no savings during that year. When the system goes online, the company will save $30,000 during the first year of operation. For the next four years, the savings will be $20,000 per year.

Assuming a 12% discount rate, what is the NPV of the system?

Write a response of approximately 300 words summarizing how you derived at your answer

Reference no: EM132067196

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Determine the npv

Reference no: EM132067196

Reference no: EM132067196

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