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Question:
You are required to perform an economic feasibility study for a project involving the setting up of an information system in a company. The table below summarises the required parameters:
(a) Is the project economically feasible? Justify your answer.
(b) Considering that the company can get a return on investment of 8% by investing its money in a high return fund, would you recommend that it invests in the information system or in the high return fund?
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what is the law of diminishing marginal product? explanation with the help of proper schedule and diagram.
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