Computer Purchase: This question requires the use of an Excel file that can be downloaded from the link shown in the instruction above. The spreadsheet named "Cost Comparison" in the Excel file provides data about a company that sells books and that is budgeting for hardware and software purchases for the upcoming 3 years. The company determined that costs invested today will be discounted over time and, therefore, identified the discounted rates for years elapsed after Time 0 (shown in cells C2:E2). Each name listed in Cells A4:49 is one item that will incur costs. Each value in Cells B4:19 is a cost to be invested at a certain time (an empty cell indicates no cost for that item-year combination). Note that "Time O" is the beginning of the three-year period;

 

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C COST OF NEW COMPUTER A B D E 2 Discount Rate 1 0.9325 0.8109 0.7051 Present Value Time 0 Year 1 Year 2 Year 3 Costs $ 1,000.00 $ $ 2,000.00 $ 800.00 $ 800.00 $ 2$ 2$ 24 2$ 4 Computer 5 Software 6 Additional Hardware 7 Training 8 Software upgrades 9 Maintenance 10 11 Total Costs 12 2$ 24 2$ 24 24 2$ $ 1,000.00 $ 1,000.00 $ 500.00 $ 500.00 $ 600.00 $ 700.00 910 C COST OF NEW COMPUTER A B D E 2 Discount Rate 1 0.9325 0.8109 0.7051 Present Value Time 0 Year 1 Year 2 Year 3 Costs $ 1,000.00 $ $ 2,000.00 $ 800.00 $ 800.00 $ 2$ 2$ 24 2$ 4 Computer 5 Software 6 Additional Hardware 7 Training 8 Software upgrades 9 Maintenance 10 11 Total Costs 12 2$ 24 2$ 24 24 2$ $ 1,000.00 $ 1,000.00 $ 500.00 $ 500.00 $ 600.00 $ 700.00 910

Answer rating: 100% (QA)

The Present Value Cost for all the years is 814231 Cost of New Computer Discount Rate ... View the full answer