Consider a 2-year investment project that provides a compound annual rate of return of 10%.  Calculate the corresponding 2-year rate of return based on the compound rate and the simple rate of return.

An investment project costs $14,100 and has annual cash flows of $3,200 for six years. a. What is the discounted payback period if the discount rate is zero percent? Discounted payback period b. What is the discounted payback period if the discount rate is 3 percent? Discounted payback periód

You are responsible to manage an IS project with a 4-year horizon. The annal cost of the project is estimated at $40,000 per year, and a one-time costs of $120,000. The annual monetary benefit of the project is estimated at $96,000 per year with a discount rate of 6 percent. a. Calculate the overall return on investment (ROI) of the project. b. Perform a break-even analysis (BEA). At what year does break-even occur?

Assuming monetary benefits of a construction project at $50,000 per year, one-time costs (initial investment) of $15,000, recurring costs of $35,000 per year, a discount rate of 10 per cent, and a 4-year time horizon, calculate the net present value (NPV) of an information system's costs and benefits. Calculate the overall return on investment (ROI) of the project. During which year does break-even occur?   Use the NPV template provided (modify to suit your answer) and clearly display the NPV, ROI, and year in which payback occurs.   Write a paragraph explaining whether you would recommend investing in this project based on your financial analysis. Explain your answer referring to the NPV, ROI and payback for this project.   Discount Rate (10%) Year 0 - 1.0000 Year 1 -    .9091 Year 2 -    .8264 Year 3 -    .7513 Year 4 -    .6830