1 OneLogin M Question 15 - FINAL EXAM - Connect Saved Help Save & Exit TB MC Qu. 16-42 The mayor of Trenton is considering the purchase... The mayor of Trenton is considering the purchase of a new computer system for the city's tax department. The system costs $85,000 and has an expected life of five years. The mayor estimates the following savings will result if the system is purchased: PV of an Year or PV of ordinary Period Savings $1 at 7% annuity at 7% $30, 000 0. 935 0. 935 35, 000 0.873 1. 808 3 40, 000 0. 816 2. 624 25, 000 0. 763 3.387 UI A 22, 000 0. 713 4. 100 If Trenton uses a 7% discount rate for capital-budgeting decisions, the net present value of the computer system would be