Assuming monetary benefits of customer ordering at $185,000 per year, one-time costs of $275,000, recurring costs of $85,000 per year, a discount rate of 12 percent, and a five-year time horizon. Complete the following calculations: Calculate the NPV Calculate the return on investment. Calculate the breakeven point.

Information Technology Project Management
8th Edition
ISBN:9781285452340
Author:Kathy Schwalbe
Publisher:Kathy Schwalbe
Chapter4: Project Integration Management
Section: Chapter Questions
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 Assuming monetary benefits of customer ordering at $185,000 per year, one-time costs of $275,000, recurring costs of $85,000 per year, a discount rate of 12 percent, and a five-year time horizon. Complete the following calculations:

  • Calculate the NPV
  • Calculate the return on investment.
  • Calculate the breakeven point.

 

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