Economic feasibility analysis of an information system : Monetary benefits of an information system = $85,000 per year. One-time costs = $75,000 Recurring cost = $35,000 per year. Discount rate = 12% Time period = 5 years

Question

Want to see the full answer?

Answer 1

Question

Chapter 4, Problem 17PE

Program Plan Intro

Economic feasibility analysis of an information system:

Monetary benefits of an information system = $85,000 per year.

One-time costs = $75,000

Recurring cost = $35,000 per year.

Discount rate = 12%

Time period = 5 years

Explanation of Solution

Overall Return on Investment (ROI):

Overall return on investment can be calculated as:

Overall ROI = (Overall NPV / NPV of all costs)

Overall NPV = (NPV of all benefits – NPV of all costs) &#

Explanation of Solution

Break-Even Analysis (BEA):

Break even analysis is carried out by determining NPV of yearly cash flows.

The yearly cash flows are calculated by subtracting present values of recurring costs from the present value of yearly benefits.

The overall NPV cash flow is total cash flow of the preceding years.

After determining NPV yearly cash flows, it is found that break even occurs between year one and two.

This is because year two is the very first year where overall NPV is positive...

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Q.1. Architecture performance [10 marks] Answer A certain microprocessor requires either 2, 4, or 6 machine cycles to perform various operations. ⚫ (40+g+f)% require 2 machine cycles, ⚫ (30-g) % require 4 machine cycles, and ⚫ (30-f)% require 6 machine cycles. (a) What is the average number of machine cycles per instruction for this microprocessor? Answer (b) What is the clock rate (machine cycles per second) required for this microprocessor to be a "1000 MIPS" processor? Answer (c) Suppose that 35% of the instructions require retrieving an operand from memory which needs an extra 8 machine cycles. What is the average number of machine cycles per instruction, including the instructions that fetch operands from memory?

Q.2. Architecture performance [25 marks] Consider two different implementations, M1 and M2, of the same instruction set. M1 has a clock rate of 2 GHz and M2 has a clock rate of 3.3 GHz. There are two classes of instructions with the following CPIs: Class A CPI for M1 CPI for M2 2.f 1.g B 5 3 C 6 4 Note that the dots in 2 fand 1.g indicate decimal points and not multiplication. a) What are the peak MIPS performances for both machines? b) Which implementation is faster, if half the instructions executed in a certain program are from class A, while the rest are divided equally among classes B and C. c) What speedup factor for the execution of class-A instructions would lead to 20% overall speedup? d) What is the maximum possible speedup that can be achieved by only improving the execution of class-A instructions? Explain why. e) What is the clock rate required for microprocessor M1 to be a "1000 MIPS" (not peak MIPS) processor?

PLEASE SOLVE STEP BY STEP WITHOUT ARTIFICIAL INTELLIGENCE OR CHATGPT I don't understand why you use chatgpt, if I wanted to I would do it myself, I need to learn from you, not from being a d amn robot. SOLVE STEP BY STEP I WANT THE DIAGRAM PERFECTLY IN SIMULINK

Answer 2

Question

Chapter 4, Problem 17PE

Program Plan Intro

Economic feasibility analysis of an information system:

Monetary benefits of an information system = $85,000 per year.

One-time costs = $75,000

Recurring cost = $35,000 per year.

Discount rate = 12%

Time period = 5 years

Explanation of Solution

Overall Return on Investment (ROI):

Overall return on investment can be calculated as:

Overall ROI = (Overall NPV / NPV of all costs)

Overall NPV = (NPV of all benefits – NPV of all costs) &#

Explanation of Solution

Break-Even Analysis (BEA):

Break even analysis is carried out by determining NPV of yearly cash flows.

The yearly cash flows are calculated by subtracting present values of recurring costs from the present value of yearly benefits.

The overall NPV cash flow is total cash flow of the preceding years.

After determining NPV yearly cash flows, it is found that break even occurs between year one and two.

This is because year two is the very first year where overall NPV is positive...

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 4, Problem 17PE

Program Plan Intro

Economic feasibility analysis of an information system:

Monetary benefits of an information system = $85,000 per year.

One-time costs = $75,000

Recurring cost = $35,000 per year.

Discount rate = 12%

Time period = 5 years

Explanation of Solution

Overall Return on Investment (ROI):

Overall return on investment can be calculated as:

Overall ROI = (Overall NPV / NPV of all costs)

Overall NPV = (NPV of all benefits – NPV of all costs) &#

Explanation of Solution

Break-Even Analysis (BEA):

Break even analysis is carried out by determining NPV of yearly cash flows.

The yearly cash flows are calculated by subtracting present values of recurring costs from the present value of yearly benefits.

The overall NPV cash flow is total cash flow of the preceding years.

After determining NPV yearly cash flows, it is found that break even occurs between year one and two.

This is because year two is the very first year where overall NPV is positive...

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 4, Problem 17PE

Program Plan Intro

Economic feasibility analysis of an information system:

Monetary benefits of an information system = $85,000 per year.

One-time costs = $75,000

Recurring cost = $35,000 per year.

Discount rate = 12%

Time period = 5 years

Explanation of Solution

Overall Return on Investment (ROI):

Overall return on investment can be calculated as:

Overall ROI = (Overall NPV / NPV of all costs)

Overall NPV = (NPV of all benefits – NPV of all costs) &#

Explanation of Solution

Break-Even Analysis (BEA):

Break even analysis is carried out by determining NPV of yearly cash flows.

The yearly cash flows are calculated by subtracting present values of recurring costs from the present value of yearly benefits.

The overall NPV cash flow is total cash flow of the preceding years.

After determining NPV yearly cash flows, it is found that break even occurs between year one and two.

This is because year two is the very first year where overall NPV is positive...

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 4, Problem 17PE

Program Plan Intro

Economic feasibility analysis of an information system:

Monetary benefits of an information system = $85,000 per year.

One-time costs = $75,000

Recurring cost = $35,000 per year.

Discount rate = 12%

Time period = 5 years

Explanation of Solution

Overall Return on Investment (ROI):

Overall return on investment can be calculated as:

Overall ROI = (Overall NPV / NPV of all costs)

Overall NPV = (NPV of all benefits – NPV of all costs) &#

Explanation of Solution

Break-Even Analysis (BEA):

Break even analysis is carried out by determining NPV of yearly cash flows.

The yearly cash flows are calculated by subtracting present values of recurring costs from the present value of yearly benefits.

The overall NPV cash flow is total cash flow of the preceding years.

After determining NPV yearly cash flows, it is found that break even occurs between year one and two.

This is because year two is the very first year where overall NPV is positive...

Answer 6

Chapter 4, Problem 17PE

Program Plan Intro

Economic feasibility analysis of an information system:

Monetary benefits of an information system = $85,000 per year.

One-time costs = $75,000

Recurring cost = $35,000 per year.

Discount rate = 12%

Time period = 5 years

Answer 7

Chapter 4, Problem 17PE

Program Plan Intro

Economic feasibility analysis of an information system:

Monetary benefits of an information system = $85,000 per year.

One-time costs = $75,000

Recurring cost = $35,000 per year.

Discount rate = 12%

Time period = 5 years

Answer 8

Explanation of Solution

Overall Return on Investment (ROI):

Overall return on investment can be calculated as:

Overall ROI = (Overall NPV / NPV of all costs)

Overall NPV = (NPV of all benefits – NPV of all costs) &#

Answer 9

Explanation of Solution

Overall Return on Investment (ROI):

Overall return on investment can be calculated as:

Overall ROI = (Overall NPV / NPV of all costs)

Overall NPV = (NPV of all benefits – NPV of all costs) &#

Answer 10

Explanation of Solution

Break-Even Analysis (BEA):

Break even analysis is carried out by determining NPV of yearly cash flows.

The yearly cash flows are calculated by subtracting present values of recurring costs from the present value of yearly benefits.

The overall NPV cash flow is total cash flow of the preceding years.

After determining NPV yearly cash flows, it is found that break even occurs between year one and two.

This is because year two is the very first year where overall NPV is positive...

Answer 11

Explanation of Solution

Break-Even Analysis (BEA):

Break even analysis is carried out by determining NPV of yearly cash flows.

The yearly cash flows are calculated by subtracting present values of recurring costs from the present value of yearly benefits.

The overall NPV cash flow is total cash flow of the preceding years.

After determining NPV yearly cash flows, it is found that break even occurs between year one and two.

This is because year two is the very first year where overall NPV is positive...

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 4 - Prob. 1M Ch. 4 - Prob. 2M Ch. 4 - Prob. 3M Ch. 4 - Prob. 4M Ch. 4 - Prob. 5M Ch. 4 - Prob. 6M Ch. 4 - Prob. 7M Ch. 4 - Prob. 8M Ch. 4 - Prob. 9M Ch. 4 - Prob. 10M

Economic feasibility analysis of an information system : Monetary benefits of an information system = $85,000 per year. One-time costs = $75,000 Recurring cost = $35,000 per year. Discount rate = 12% Time period = 5 years

Solution Summary: The author analyzes the economic feasibility of an information system. Monetary benefits = 85,000 per year. One-time costs = 75,000.

Concept explainers

Economic feasibility analysis of an information system:

Monetary benefits of an information system = $85,000 per year.

One-time costs = $75,000

Recurring cost = $35,000 per year.

Discount rate = 12%

Time period = 5 years

Explanation of Solution

Overall Return on Investment (ROI):

Overall return on investment can be calculated as:

Overall ROI = (Overall NPV / NPV of all costs)

Overall NPV = (NPV of all benefits – NPV of all costs) &#

Explanation of Solution

Want to see the full answer?

Chapter 4 Solutions

Economic feasibility analysis of an information system : Monetary benefits of an information system = $85,000 per year. One-time costs = $75,000 Recurring cost = $35,000 per year. Discount rate = 12% Time period = 5 years

Solution Summary: The author analyzes the economic feasibility of an information system. Monetary benefits = 85,000 per year. One-time costs = 75,000.

Concept explainers

Economic feasibility analysis of an information system: Monetary benefits of an information system = $85,000 per year. One-time costs = $75,000 Recurring cost = $35,000 per year. Discount rate = 12% Time period = 5 years

Explanation of Solution

Overall Return on Investment (ROI): Overall return on investment can be calculated as: Overall ROI = (Overall NPV / NPV of all costs) Overall NPV = (NPV of all benefits – NPV of all costs) &#

Explanation of Solution

Want to see the full answer?

Chapter 4 Solutions

Economic feasibility analysis of an information system:

Monetary benefits of an information system = $85,000 per year.

One-time costs = $75,000

Recurring cost = $35,000 per year.

Discount rate = 12%

Time period = 5 years

Overall Return on Investment (ROI):

Overall return on investment can be calculated as:

Overall ROI = (Overall NPV / NPV of all costs)

Overall NPV = (NPV of all benefits – NPV of all costs) &#