Calculate the net present value (NPV), the return on investment (ROI) and the payback period using a discount rate of 8 percent for the following systems development project. Anticipated Year Annual Benefits Expected Annual Operating Costs Discount Factors at 8 Percent $55,000 $5,000 9259 2 $60,000 $5,000 .8573 $70,000 $5,500 7938 4 $75,000 $5,500 7349 $80,000 $7,000 .6805 6. $80,000 $7,000 .6301 $80,000 $7,000 .5833 $80,000 $8,000 5401 The initial development costs for the system were $225,000.

Calculate the net present value (NPV), the return on investment (ROI) and the payback period using a discount rate of 8 percent for the following systems development project. Anticipated Year Annual Benefits Expected Annual Operating Costs Discount Factors at 8 Percent $55,000 $5,000 9259 2 $60,000 $5,000 .8573 $70,000 $5,500 7938 4 $75,000 $5,500 7349 $80,000 $7,000 .6805 6. $80,000 $7,000 .6301 $80,000 $7,000 .5833 $80,000 $8,000 5401 The initial development costs for the system were $225,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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