To help manage production of a company's missile systems, the purchase of a production scheduling software is being considered. The software is expected to have useful life of 4 years and can be purchased and installed for $150,000. Annual staff training and upgrades are expected to cost $40,000 in each of the four years. The system engineers anticipate and annual operating cost savings (i.e., benefits) of $75,000 in each of the four years. The estimated annual rate of inflation is 3%. What is the Net Present Value (NPV) of this entire investment?

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of this entire investment we can use the formula NPV ... View the full answer