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.