Create 2 separate excel sheet for 2 questions. One excel sheet per question.
question 1 – Assume monetary benefits of an information system of $40,000 the first year 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, calculate the net present value of these costs and benefits. Also calculate the overall return on investment and then present a break-even analysis. At what point does breakeven occur?
Question 2 – Create numeric cost estimates for each of the costs listed. Calculate the net present value and return on investment. Include a break-even analysis. Assume a 10 percent discount rate and a five-year time horizon. assume that the one‑time costs of implementing the Web site are $50,000 and the recurring costs are $10,000 per year, and the benefits are $40,000 per year to create a spreadsheet analysis that provides an economic summary of this situation.
Create 2 separate excel sheet for 2 questions. One excel sheet per question. que
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