Question

**please i need full answer to understand this question**
5.43 Assume monetary benefits of an information system of $40,000 the first year and increasing benefits of $10,000 a year for the next five years (year 1=$50,000, year 2=$60,000,
year 3=$70,000, year 4=$80,000, year 5=$90,000).

One-time development costs were $80,000 and recurring costs were $45,000 over the duration of the system's life. The discount rate for the company was 11 percent. Using a six-year time
horizon, calculate the net present value of these costs and benefits. Also calculate the overall return on investment and then present a break-even analysis.

-At what point does breakeven occur?

5.43 Change the discount rate for Problem to12 percent and redo the analysis.

5.43 Change the recurring costs to $40,000 and redo the analysis.

Answer 1

NPV analysis along with working note given below: