System analysis /design

Assume the following facts:

A project will cost $45,000 to develop. When the system becomes operational, after

a one-year development period, operational costs will be $9,000 during each year of

the system’s five-year useful life. The system will produce benefits of $30,000 in the

first year of operation, and this figure will increase by a compound 10% each year.

What is the payback period for this project?………

  • Complete the Cost Analysis Project #2 under Exercises at the end of Chapter 7 of the text.
  • Use the spreadsheet method depicted in Part C of the Systems Analyst’s Toolkit to display the Net Present Value of the system
  • Toolkit C
  • Write a response of approximately 250 words summarizing how you derived at your answer.

Calculate Price

Price (USD)