In: Finance
| Use the following table solve the Benefit Cost Ratio , NPV benefits (Please show excel formulas as well) | |||||||
| Discount rate | 0.08 | ||||||
| 0 | 1 | 2 | 3 | ||||
| System A | |||||||
| Costs | |||||||
| Hardware | 14000 | 3000 | 3000 | 3000 | |||
| Software | 12000 | 2000 | 2000 | 1000 | |||
| Services | 2500 | 2500 | 2500 | 2500 | |||
| Benefits | |||||||
| Increased productivity | 15000 | 10000 | 5000 | ||||
| Lower Error rates | 18000 | 5000 | 6000 | ||||
| System B | |||||||
| Costs | |||||||
| Hardware | 15000 | 3000 | 3000 | 3000 | |||
| Software | 12000 | 4000 | 2000 | 5000 | |||
| Services | 7000 | 3000 | 3000 | 1000 | |||
| Benefits | |||||||
| Increased productivity | 7000 | 10000 | 10000 | ||||
| Reduced Work Force | 15000 | 15000 | 15000 | ||||