Reconsider Problem 25. Determine which ERP system should be purchased based on an incremental present worth analysis.
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Reconsider Problem 25. Determine which ERP system should be purchased based on an incremental present worth analysis.
Data from problem 25
The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs \(\$ 380,000\) initially and is expected to increase revenue \(\$ 125,000\) per year every year. The software and installation from Vendor B costs \(\$ 280,000\) and is expected to increase revenue \(\$ 95,000\) per year. Manuel's uses a 4-year planning horizon and a 10 percent per year MARR.
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Related Book For
Principles Of Engineering Economic Analysis
ISBN: 9781118163832
6th Edition
Authors: John A. White, Kenneth E. Case, David B. Pratt
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