Net Present Value (NPV) Method of Evaluating a Capital Expense You are requesting approval of a capital expenditure for a new dictation system. The cost of the system is $65,000.00. You expect that the system will save the HIM Department $20,000.00 per year by eliminating the cost of outside contract transcription. You anticipate that the system life will be 5 years. Your facility uses straight line depreciation for the life of any capital expenditure. Assume that management requires the use of a net present value (NPV) of capital at 10%. Use the NPV shown in Table 6-30