Complete the cost analysis | Information Systems homework help


Turn to Part C of the Systems Analyst’s Toolkit and review the concept of net present value (NPV). 

Determine the NPV for the following: 

An information system will cost $95,000 to implement over a one-year period and will produce no savings during that year. When the system goes online, the company will save $30,000 during the first year of operation. For the next four years, the savings will be $20,000 per year. Assuming a 12% discount rate, what is the NPV of the system?

Write a response of approximately 300 words summarizing how you derived at your answer

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