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.
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.
Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
Section: Chapter Questions
Problem 1PE
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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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