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lana [24]
3 years ago
14

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

quoted a purchase price of $90,000. Galvanized Products is planning to borrow 1/4th of the purchase price from a bank at 18.00 % 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 $4,600 at that time. Over the 5-year period, Galvanized Products expects to pay a technician $28,000 per year to maintain the system but will save $51,000 per year through increased efficiencies. Galvanized Products uses a MARR of 18.00 %/year to evaluate investments.
What is the present worth of this investment?
Business
1 answer:
jok3333 [9.3K]3 years ago
3 0

The purchase price is 90,000

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Answer:

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Answer:

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Explanation:

Given,

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