A company is investing in a new system that will provide annual savings of $300000. The initial cost of the system is $1,250,000 with additional maintenance costs of $175,000 per year. The useful life of the system is 7 years and the MARR is 11% per year. Determine how sensitive the decision to invest in this system to the estimates of annual revenue and maintenance cost?

Answer rating: 100% (QA)

Initial cost 1250000 Annual maintenance cost 175000 Annual savings 30 12345 370350 Life 7 years MARR ... View the full answer