A company has determined that implementing a new \"bring your own device\" (BYOD
ID: 2562779 • Letter: A
Question
A company has determined that implementing a new "bring your own device" (BYOD) strategy for sales agents in the company will require the purchase of mobile device management software to adequately manage and control corporate data. The total cost of the investment including software licenses, training, certification, and hardware is expected to be as follows:
Year 1: $702,000;
Year 2: $570,000;
Year 3: $101,000;
Year 4: $110,000;
Year 5: $48,000
The solution is expected to create savings on PC and software costs for sales agents, and generate new sales due to an increase in sales force efficiency. The net benefits are expected to be as follows:
Year 1: $11,000;
Year 2: $230,000;
Year 3: $535,000;
Year 4: $1,137,000;
Year 5: $2,255,000
What is the Return on Investment ratio for this investment? (No more than two decimal places in your answer. Round to the nearest hundredth)
Write you answer in the following format: 0.00 NOT in %
Explanation / Answer
Return on Investment - A Project that break even has on ROI of 100% Year - 1 Year - 2 Year - 3 Year - 4 Year - 5 Total Investments 7,02,000 5,70,000 1,01,000 1,10,000 48,000 15,31,000 Savings 11,000 2,30,000 5,35,000 11,37,000 22,55,000 41,68,000 ROI End of Year 1 Investments 7,02,000 Savings 11,000 0.02 End of Year 2 Investments 12,72,000 Savings 22,000 0.02 End of Year 3 Investments 13,73,000 Savings 7,76,000 0.57 End of Year 4 Investments 14,83,000 Savings 19,13,000 1.29 End of Year 5 Investments 15,31,000 Savings 41,68,000 2.72 Note : While calculating the ROI, does not take into account the net present value of the Money Invested and Savings
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