Reference no: EM132799743

The benefits of a project are $40,000 at the beginning of the project and increasing benefits of $10,000 a year for the next five years (year 1 = $50,000, year 2 = $60,000, year 3 = $70,000, year 4 = $80,000, year 5 = $90,000). One-time development costs were $80,000, and recurring costs were $45,000 over the duration of the system's life. The discount rate for the company was 11 percent. Using a six-year time horizon (y0, y1, y2, y3, y4, y5), what is the net present value of these costs and benefits?