Perform an economic feasibility study, Microeconomics

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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:

2158_Perform an economic feasibility study.png

(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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