Calculate the net present value


Consider, as an example, buying a network of PCs for a department at your workplace or, alternatively, consider outfitting a laboratory of PCs for students at a university. For your example, estimate the costs outlined in Table 5-5. For the situation chosen above, either buying a network of PCs for a department at your workplace, or outfitting a laboratory of PCs for students at a university, estimate the costs and benefits for your system. Then calculate the net present value (NPV) and return on investment (ROI) and present a break-even analysis (BEA). Assume a discount rate of 12 percent and a five-year time horizon.

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Accounting Basics: Calculate the net present value
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