Problem: Assume the following information about an information system being developed by a project management team you are over monetary benefits of an information system of $ 40,000 the first year and increasing benefits of $ 10,000 a year for the next five years (year 1 = $ 50,000, year 2 = $ 60,000, year 3 = $ 70,000, year 4 = $ 80,000, year 5 = $ 90,000).
One-time development costs were $ 80,000 and recurring costs were $ 45,000 over the duration of the system's life.
The discount rate for the company was 12 percent.
Using a six-year time horizon, calculate the net present value of these costs and benefits.