Question: Your Vice President for MIS informs you that she has researched the possibility of automating your organizations order-entry system. She has projected that the new

Your Vice President for MIS informs you that she has researched the possibility of automating your organization’s order-entry system. She has projected that the new system will reduce labor costs by $30,000 each year over the next five years. The purchase price (including installation and testing) of the new system is $110,000.

What is the Net Present Value of this investment if the discount rate is 10% per year?

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