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There are three plans given for solving a problem of faster execution of customer queries in a banking system. Each has different Benefits and Costs. Benefits Plan A 0.001 sec Plan B Plan C 0.002 sec 0.005 sec 100 requests/sec 200 requests/sec 150 requests/sec Search Time Throughput Added Value Costs Hardware $10000 Software $50,000 Business Losses $28,000/yr $5000 $300,000 $10,000/yr $200,000 Total Cost (1st Year) Compute the "Added value" when the company savings are $3600 per year. Note: Added value is computed by calculating the additional requests per second that the system can process in a minute and multiplying that number with savings of company per year. Compute: • Return on Investment (for 1 year, 3 year and 5 year), % gain on ROI (for 1 year, 3 year and 5 year) Payback Period for each plan (whether correct or not). Also identify the best Plan among them for long term investment and give reason why.

There are three plans given for solving a problem of faster execution of customer queries in a banking system. Each has different Benefits and Costs. Benefits Plan A 0.001 sec Plan B Plan C 0.002 sec 0.005 sec 100 requests/sec 200 requests/sec 150 requests/sec Search Time Throughput Added Value Costs Hardware $10000 Software $50,000 Business Losses $28,000/yr $5000 $300,000 $10,000/yr $200,000 Total Cost (1st Year) Compute the "Added value" when the company savings are $3600 per year. Note: Added value is computed by calculating the additional requests per second that the system can process in a minute and multiplying that number with savings of company per year. Compute: • Return on Investment (for 1 year, 3 year and 5 year), % gain on ROI (for 1 year, 3 year and 5 year) Payback Period for each plan (whether correct or not). Also identify the best Plan among them for long term investment and give reason why.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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am. 121.

There are three plans given for solving a problem of faster execution of customer queries in a banking system. Each has different Benefits and Costs. Benefits Plan A 0.001 sec Plan B Plan C 0.002 sec 0.005 sec 100 requests/sec 200 requests/sec 150 requests/sec Search Time Throughput Added Value Costs Hardware $10000 Software $50,000 Business Losses $28,000/yr $5000 $300,000 $10,000/yr $200,000 Total Cost (1st Year) Compute the "Added value" when the company savings are $3600 per year. Note: Added value is computed by calculating the additional requests per second that the system can process in a minute and multiplying that number with savings of company per year. Compute: • Return on Investment (for 1 year, 3 year and 5 year), % gain on ROI (for 1 year, 3 year and 5 year) Payback Period for each plan (whether correct or not). Also identify the best Plan among them for long term investment and give reason why.
Transcribed Image Text:There are three plans given for solving a problem of faster execution of customer queries in a banking system. Each has different Benefits and Costs. Benefits Plan A 0.001 sec Plan B Plan C 0.002 sec 0.005 sec 100 requests/sec 200 requests/sec 150 requests/sec Search Time Throughput Added Value Costs Hardware $10000 Software $50,000 Business Losses $28,000/yr $5000 $300,000 $10,000/yr $200,000 Total Cost (1st Year) Compute the "Added value" when the company savings are $3600 per year. Note: Added value is computed by calculating the additional requests per second that the system can process in a minute and multiplying that number with savings of company per year. Compute: • Return on Investment (for 1 year, 3 year and 5 year), % gain on ROI (for 1 year, 3 year and 5 year) Payback Period for each plan (whether correct or not). Also identify the best Plan among them for long term investment and give reason why.
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