Show the cash-flow profiles using the same format

Assignment Help Finance Basics

Reference no: EM132182332

Problem - Return on Software: Maximizing the Return on Your Software Investment

Four different software projects have been proposed. All projects have an identical 6-year lifespan with cash-flow profiles estimated as shown in the following table.

	P1	P2	P3	P4
Investment	$200,000	$750,000	$200,000	$450,000
Annual revenue	$250,000	$500,000	$60,000	$200,000
Annual cost	$50,000	$20,000	$10,000	$40,000
Salvage value	$0	$0	$0	$50,000

1. Show the matrix of all theoretically possible investment alternatives.

2. Proposal P1 is to modify an existing system, and P2 is to replace it with a commercial package, so these are mutually exclusive proposals. P3 is an optional add-on to the commercial package, so it is contingent on P2. Indicate which alternatives are not feasible and explain why they are infeasible.

3. Using the answer to the previous question, calculate the cash-flow profiles for each feasible alternative. Show the cash-flow profiles using the same format (i.e., as a table) as is shown for the original proposals.

Reference no: EM132182332

Questions Cloud

Show how mediawiki can be install on cloud : Show how MediaWiki can be install on Cloud. (AWS EC2 cloud). I highly recommend creating / using a knowledge base in almost any environment.

Does machiavelli respect borgia for this : In The Prince, explain how Borgia used Ramiro D'Orco to accomplish his rise to power. Does Machiavelli respect Borgia for this?

American political culture : Do his thoughts, observations, philosophies still resonate in American political culture or have we moved on?

How does disney connect with the target market : Thinking specifically about the segment that you have selected, how does Disney connect with the target market?

Show the cash-flow profiles using the same format : Using the answer to the previous question, calculate the cash-flow profiles for each feasible alternative. Show the cash-flow profiles using the same format

Country with a balance of payment deficits : In a fixed exchange rate system what effect is their on domestic prices for the country with a balance of payment deficits?

Kamala harris performed recently in the office : What legislative or representative functions has senator Kamala Harris performed recently in the office?

Discuss the research strategies that will be used : Discuss the research strategies that will be used by your company to understand the target market(s), industry, competition.

Organizational environment and environmental domain : Distinguish between organizational environment and environmental domain.

User Account

All Pages