Assume a proposed system has a useful life of 5 years, one-time costs of 45,000, recurring costs

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Assume a proposed system has a useful life of 5 years, one-time costs of 45,000, recurring costs of $20,000 per year, and tangible benefits of $65,000 per year. If the cost of capital is 12 percent (12%), what is the Overall ROI?

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Intermediate Accounting Reporting and Analysis

ISBN: 978-1111822361

1st edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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Posted Date: Jan 19, 2023 12:34 AM

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Assume a proposed system has a useful life of 5 years, one-time costs of 45,000, recurring costs

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To calculate the Overall ROI we need to first calculate the net present value NPV of the proposed sy... View the full answer

Intermediate Accounting Reporting and Analysis

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