Calculating ROI and Payback
You will be conducting an ROI and Payback Period Analysis.
Working with the attached Excel spreadsheet, you are to determine two scenarios that are given to you and figure out the ROI and Payback Period for each scenario.
All the data, as well as a template, are provided to you.
Scenario: You are trying to find a way to invest in software to help improve the websites you create. You will purchase the software to produce the websites.
– In Scenario A, the software cost is 10,000 and will produce 8 websites that you will sell for $1,500 each.
– In Scenario B, the software cost is $12,500 and will produce 9 websites that you will sell for $1,650 each.
Excel Spreadsheet: M9 – ROI and Payback.xlsx Download M9 – ROI and Payback.xlsx
Once you have figured out the ROI and Payback Period, you are to submit an APA formatted paper and include the following:
Introduction
Summarize the scenarios that you want to present to your boss
ROI
Explain what ROI is (Define…only explaining the equation is not considered a definition.).
What are the ROI results for both scenarios?
Solely based on ROI, which scenario would you recommend to your boss and why?
Payback Period
Explain what the Payback Period is (Define…only explaining the equation is not considered a definition.).
What are the Payback Periods for both scenarios?
Solely based on the Payback Period, which scenario would you recommend to your boss and why?
Conclusion
Provide a summary of the analysis you conducted and why you selected one scenario over the other.
The paper should be in APA 7.0 Professional format and include at least two references (these DO NOT have to be scholarly, peer-reviewed). There is a template of an APA 7.0 Professional paper in the Introductory Module. The 1 – 2 pages DOES NOT include the title page and reference page.
Report Template: APA 7.0 Professional Template.docx
SUBMIT
M9- ROI and Payback Excel File
Report – Written Paper