Question: Hillsdale is considering purchasing computer software on January 1 , 2020. The software company charges $32,000 plus annual license renewals of $1,700 for three years,

Hillsdale is considering purchasing computer software on January 1 , 2020. The software company charges $32,000 plus annual license renewals of $1,700 for three years, which includes technical support. Assume the software is purchased and paid for at the beginning of year one, but the annual license is paid for at the end of each year. The discount rate is 8%. How much will Hillsdale record for this purchase on January 1, 2020?

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