Question: A project manager is managing a software development project for a hospital. There is a new computer available that will speed up the development process

A project manager is managing a software development project for a hospital. There is a new computer available that will speed up the development process considerably. The new computer costs $50,000 including shipping, installation, and startup. The computer will cause a gross savings of $100,000. What is the net present value of the savings if they occur one year after the expenditure for the computer? Assume a 10%

interest rate.

a. $90,000

b. $40,909

c. $45,555

d. $91,110

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