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Aliun [14]
3 years ago
12

Galvanized Products is considering purchasing a new computer system for their enterprise data management system. The vendor has

quoted a purchase price of $80,000. Galvanized Products is planning to borrow 1/4th of the purchase price from a bank at 15.00 % compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to last 5 years and has a salvage value of $5,400 at that time. Over the 5-year period, Galvanized Products expects to pay a technician $23,000 per year to maintain the system but will save $50,000 per year through increased efficiencies. Galvanized Products uses a MARR of 15.00 %/year to evaluate investments
Required:
a.What is the present worth of this investment?
b. Should the new computer system be purchased?
Business
1 answer:
Marat540 [252]3 years ago
3 0

Answer:

Explanation:Idk.....

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