Net Present Value Analysis
1. The following are the key assumptions of used in this analysis; Continue reading...
- Employee cost: average salary per employee involved in implementation is 100000
- Consultation cost per month 15400 per month
2. With a NPV of (8.2) million and reduced average consulting cost per month of $ 5000 from 15400, the discount rate that will make the NPV for the project 0 is 0.026306212. This is also equivalent to 2.63%.
3. With consulting cost of $15,400 per month and a discount rate of 0.09, the NPV of the project will be $ (25.7) million if the number of employees