Essay
Perform a cost-benefit analysis with payback period calculation using the following data:
Direct Costs
• 25 networkable PCs-$1,700/each
• A server-$2,700
• Peripherals-$2,200
• Network installation-$5,800
• Sales system software-$11,500
Indirect Costs
• Training-$14,500
• Lost time-30 days × $150/day
• Sales-related losses during implementation-$21,000
Annualized Benefits
• Increased sales capacity-$190,000
• Improved customer retention-$250,000
• Improved follow-up sales opportunities-$180,000
Correct Answer:
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Total costs, Ct = Cd + Ci = $64,7...View Answer
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