Question: Project 1 is a new software installation that will improve the efficiency of ybur accounting department, Investment costs are: - Initial installation (at year 0

Project 1 is a new software installation that will improve the efficiency of ybur accounting department, Investment costs are: - Initial installation (at year 0 on the timeline) $200,000 - $15,000 software updates at years 1.2.3,4.5 on the timeline and beyond 535.000 major software redesign at year 3 on the timeline Savings from efficiency improvements are estimated at $90,000 per year, Starting at year 1 on the timeline. Consider the project only at year O to year 5 on the timeline. Assume a discount rate of 12%.

What is the approximate NPV for the project?

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Approximate NPV for Project 1 Years 05 33437896 The Net Present Value NPV of Project 1 is negative i... View full answer

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