Question: Hillsdale is considering two options for comparable computer software. Option A will cost $29,000 plus annual license renewals of $1,900 for three years, which includes

 Hillsdale is considering two options for comparable computer software. Option A

Hillsdale is considering two options for comparable computer software. Option A will cost $29,000 plus annual license renewals of $1,900 for three years, which includes technical support. Option B will cost $18,000 with technical support being an add-on charge. The estimated cost of technical support is $4,700 the first year, $3,700 the second year, and $2,700 the third year. Assume the software is purchased and paid for at the beginning of year one, but that technical support is paid for at the end of each year. The discount rate is 9%, Ignore income taxes. (EV of \$1. PV of \$1. EVA of \$1, and PVA of \$1) (Use appropriate factor(s) from the tables provided.) a. Calculate the present value of net cash flows. b. Determine which option should be chosen based on present value considerations. Complete this question by entering your answers in the tabs below. Caiculate the present value of net cash flows. (Round your intermediate calculations and final answers to the nearest whole dollar)

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