Question: A robotics expert purchased a new computer system for $ 1 5 0 , 0 0 0 . The maintenance and operating costs are $

A robotics expert purchased a new computer system for $150,000. The maintenance and operating costs are $12,000 per year. After six years, the expert purchases a system to upgrade the computer system at a cost of $70,000 and the operation and maintenance costs will be $10,000 per year. The machine will be used for an additional 6 year and then sold for $1,800,000. Calculate the present value of the computer system using an interest rate of 11%

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