Your friend is studying the feasibility for opening a new company. He / She provides you with the below table indicating the costs and the benefits for the system on 4 years, with a discount factor of 11%. Calculate the Present Value (PV) for each year and fill the table. Given the formula to calculate the PV: PV. = 1/(1 + ir where n is the number of years and i is the discount rate. Calculate the NET Present Value Year Discount factor 11% Development (S50,000.00) costs Operation Costs (S30,000.00) (S60,000.00) (S90,000.00) (S100,000.00) Present value Costs Total Present Value of lifetime costs Annual benefits S100,000.00 $0.00 $90,000.00 $125,000.00 S170,000.00 Present value benefits Total Present value of lifetime benefits Total Present value of lifetime

Your friend is studying the feasibility for opening a new company. He / She provides you with the below table indicating the costs and the benefits for the system on 4 years, with a discount factor of 11%. Calculate the Present Value (PV) for each year and fill the table. Given the formula to calculate the PV: PV. = 1/(1 + ir where n is the number of years and i is the discount rate. Calculate the NET Present Value Year Discount factor 11% Development (S50,000.00) costs Operation Costs (S30,000.00) (S60,000.00) (S90,000.00) (S100,000.00) Present value Costs Total Present Value of lifetime costs Annual benefits S100,000.00 $0.00 $90,000.00 $125,000.00 S170,000.00 Present value benefits Total Present value of lifetime benefits Total Present value of lifetime

MIS

9th Edition

ISBN:9781337681919

Author:BIDGOLI

Publisher:BIDGOLI

Chapter10: Building Successful Information Systems

Section: Chapter Questions

Problem 1P

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If you have a column of cash flows from years 0 to n and you wish to calculate the present worth of the cash flows. You could use the following EXCEL function(s) for solving the problem with an excel spread sheet: None of these answers is correct RATE IRR PMT PV or NPV
If you have a column of cash flows from years 0 to n and you wish to calculate the present worth of the cash flows. You could use the following EXCEL function(s) for solving the problem with an excel spread sheet: None of the above Maximize EUAB Maximize NPW Maximize (EUAB - EUAC) Maximize PW of Benefits
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