Our computer systems are in serious need of an upgrade. System 10.4 cost $120,000 in hardware and software and will reduce our annual expenses by $5,000 per year for the next 5 years. System 15.3 costs $500,000 and reduces operational costs by $10,000 for the 1st 3 years, $20,000 in Year 4 and $60,000 in Year 5. Would this be a smart investment if we are in good financial standing and have other financial opportunities available?

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Given the scenario we should calculate the Return on Investment ROI for each system Based on the pro... View the full answer