B. The following table describes the projected costs and benefits for the next five years of a proposed software development project. Year 2 3 4 5 Costs (RM) 110,000 15,000 15,000 15,000 15,000 25,000 Benefits (RM) 45,000 50,000 55,000 60,000 63,000 Using the information from above, you are required to answer the following: Calculate the cumulative present values of its cost and of its benefits for all the five years. Determine when the payback will occur for this new system. iii) 11 Determine the Return of Investment (ROI) for this new system at Year5. What can you conclude about this proposed software project?

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
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B. The following table describes the projected costs and benefits for the next five years of
a proposed software development project.
Year
1
4
Costs (RM)
110,000 15,000
15,000
15,000
15,000
25,000
Benefits (RM)
0| 45,000
50,000
55,000
60,000
63,000
Using the information from above, you are required to answer the following:
Calculate the cumulative present values of its cost and of its benefits for all the
five years.
Determine when the payback will occur for this new system.
111)
Determine the Return of Investment (ROI) for this new system at Year5.
What can you conclude about this proposed software project?
Transcribed Image Text:B. The following table describes the projected costs and benefits for the next five years of a proposed software development project. Year 1 4 Costs (RM) 110,000 15,000 15,000 15,000 15,000 25,000 Benefits (RM) 0| 45,000 50,000 55,000 60,000 63,000 Using the information from above, you are required to answer the following: Calculate the cumulative present values of its cost and of its benefits for all the five years. Determine when the payback will occur for this new system. 111) Determine the Return of Investment (ROI) for this new system at Year5. What can you conclude about this proposed software project?
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