Example 2 A new social-media marketing software and hardware system costs $150,000. The system increases revenues by $60,000/ year for the next five years. Ongoing updates and support costs $10,000/ year. The upfront cost will be depreciated straight line to zero over five years. The hardware will actually be worthless in five years. If we require a 10 percent return, what is the NPV of the purchase? Assume a tax rate of 21 percent