Software Project Management20785 marksNumerical: ROI calculationEconomic analysis
Calculate ROI for the following project
Calculate ROI for the following project
$$\begin{array}{|c|c|}\hline \text{Year} & \text{Project} \ \hline 0 & -50000 \ 1 & 5000 \ 2 & 5000 \ 3 & 20000 \ 4 & 40000 \ 5 & 50000 \ \hline \end{array}$$
[5]
Year Cash Flow (Rs.) ---------------------- 0 -50,000 (investment) 1 +5,000 2 +5,000 3 +20,000 4 +40,000 5 +50,000 - Initial Investment = Rs. 50,000 - No discount rate specified, so this is simple (average) ROI. --- $$ \text{Total Benefits} = 5000 + 5000 + 20000 + 40000 + 50000 = Rs.\ 120000 $$ -...