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Perform a Cost-Benefit Analysis with Payback Period Calculation Using the Following

Question 14

Multiple Choice

Perform a cost-benefit analysis with payback period calculation using the following data: Direct Costs
• 15 laptops-$1,850/each
• A server-$2,100
• Network installation-$16,500
• Software-$22,500
Indirect Costs
• Training-$10,000
Annualized Benefits
• Increased capacity-$250,000


A) Total costs are $52,950 with a payback period of 0.21 years.
B) Total costs are $52,950 with a payback period of 0.32 years.
C) Total costs are $108,250 with a payback period of 0.43 years.
D) Total costs are $78,850 with a payback period of 0.32 years.
E) Total costs are $78,850 with a payback period of 0.43 years.

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