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roylee
Aug 4, 2010, 09:19 AM
Assuming monetary benefits of an information system at $85,000 per year, one-time costs of $75,000, recurring costs of $35,000 per year, discount rate of 12 percent, and a five-year time horizon, calculate the net present value of these costs and benefits of an information system. Also calculate the overall return present a break-even analysis. At what point does break-even occur.

morgaine300
Aug 5, 2010, 05:07 PM
Please see the guidelines for posting homework problems:
https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html

But a little reading material:
Principles of Accounting Chapter 24 (http://www.principlesofaccounting.com/chapter%2024.htm#EVALUATION%20OF%20LONG-TERM%20PROJECTS)