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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Definitions:

Stacked Questions

A method of asking several questions at once, which can overwhelm respondents and potentially lead to unclear or biased answers.

Low Yield

An investment or venture that generates a relatively small return or profit compared to the effort, cost, or risk involved.

Unproductive

Not producing or able to produce large amounts of goods, services, or results.

Discrepancy

The difference or inconsistency between two or more elements, such as expectations and reality.