You are familiar with several software packages that might automate Viva's rental business processes. You estimate that the best package comes from Global Adventures. It is the most expensive and will probably cost about $100,000 to implement. This includes the lease costs of the package itself, plus the costs of computerizing the company's manual files. Assume that there are no benefits from the system the first year. You estimate the system will save the company a net of $20,000 the second year (after costs) and then $30,000 per year for the next three years.

What is the net present value of the system? What recommendation will you make, based upon your calculations?

Answer rating: 100% (QA)

To calculate the net present value NPV of the system we need to discount al... View the full answer