Your firm has the option of making an investment in new software that will cost $130,000 today

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Your firm has the option of making an investment in new software that will cost $130,000 today and is estimated to provide the savings shown in the following table over its 5-year life.

YearSaving Estimates

1$35,000

250,000

345,000

425,000

515,000

Should the firm make this investment if it requires minimum annual return of 9 percent on all investments?

Posted Date: May 19, 2024 04:12 PM

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Your firm has the option of making an investment in new software that will cost $130,000 today

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