Assume you are put in charge of launching a new Web site for a local nonprofit organization. What costs would you need to account for? Make a list of expected costs and benefits for the project. You don't need to list values, just sources of expense. Consider both one-time and recurring costs.
Consider the situation you addressed in Problem and Exercise. Create numeric cost estimates for each of the costs you listed. Calculate the net present value and return on investment.
Include a break-even analysis. Assume a 10 percent discount rate and a five-year time horizon.