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Information System- at what point does break-even occur?


Assuming monetary investments of an Information System at $85.000 per year, one time cost of $75,000, reoccurring costs of $35,000 per year, a discount rate of 12% and a 5 year time horizon calculate the net present value of these costs and benefits of an information system. Also calculate the overall return of investment of the project and then present a break even analysis. At what point does break-even occur?

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