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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? You are taking a significant risk when you post homework questions here, as you have no idea whether anyone who answers is academically gifted or not (i.e. a person can be very successful in world of investing but still not be able to answer finance or economics questions correctly). Not to mention the fact that you have a teacher, classmates, and textbook that are more familiar with material you are studying and would be better qualified to help you arrive at correct answer. |
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