Question: A new software package is available for CAD design. A single-user license will cost $7,000 per year. A multi-user license has a one-time cost of
A new software package is available for CAD design. A single-user license will cost $7,000 per year. A multi-user license has a one-time cost of $22,000 incurred now and is good for 4 years. A construction company is trying to decide between two alternatives: buy a single-user license, or buy a multi-user license. Assume an interest rate of 10% per year and a 4-year planning period. Question 11 (10 points) Determine the annual worth of the single-user license. $-5,000 $-7,000 $-28,000 $-3,500 Question 12 (10 points) Determine the annual worth of the multi-user license. O $-5,940 $-7,940 $-6,440 $-6,940
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