Bell Mountain Vineyards is considering updating its current manual accounting system with a high-end electronic system. While the new accounting system would save the company money, the cost of the system continues to decline. The Bell Mountain€™s opportunity cost of capital is 10 percent, and the costs and values of investments made at different times in the future are as follows:

When should Bell Mountain buy the new accountingsystem?

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Value of Future Savings (at time of purchase) $7,000 7,000 7,000 7,000 7,000 7,000 Cost $5,000 4,500 4,000 3,600 3,300 3,100 0 4 5