Lab 7 - MGMT 29000-002 Programming for Business...

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MGMT 29000-002 Programming for Business Applications Fall 2011 Lab 7 Lab Purpose: The purpose of this lab is to provide more experience with Java types and expressions. Lab Instructions: Description: We almost never have enough money to do all of the things we want to do. Therefore, we have to make hard decisions about how to spend our money. This is very true in corporations. One technique used by firms is to do a calculation, called Net Present Value (NPV). NPV takes into account how much it costs to start a project (or the “initial investment”), the costs of maintaining the project over the years and the benefits gained from the project over the years. We also need to factor in the time value of money, or the discount rate, as we typically use NPV for projects spanning multiple years (remember, a dollar today has a different value than a dollar promised in the future). Design, write, and implement a Java program that will compute the Net Present Value (NPV) of an Information Technology (IT) project. You may use the following formula in computing the NPV: Where C 0 is the initial investment, B t is the financial benefit at time t , C t is the financial cost at time t and k is the discount rate. You may assume a three-year project lifespan (typical for some IT projects.) Your program should ask the user for the initial investment, the benefits and costs at year 1, 2, and 3, and the discount rate. Your program should then display the NPV for the values entered by the user.
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Lab 7 - MGMT 29000-002 Programming for Business...

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