Assume a proposed system has a useful life of 5 years, one-time costs of $250,000, recurring costs of $80,000 per year, and tangible benefits of $175,000 per year. If the cost of capital is 12%, what is the overall NPV? Overall ROI? Break-even point?

What will be an ideal response?


The overall NPV is $92,454; the overall ROI is .17, and break-even occurs in year 4.

Business

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What will be an ideal response?

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