subject
Business, 16.10.2020 18:01 isabellatessa86

Galvanized Products is considering purchasing a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $80,000. Galvanized Products is planning to borrow 1/4th of the purchase price from a bank at 15.00 % compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to last 5 years and has a salvage value of $5,400 at that time. Over the 5-year period, Galvanized Products expects to pay a technician $23,000 per year to maintain the system but will save $50,000 per year through increased efficiencies. Galvanized Products uses a MARR of 15.00 %/year to evaluate investments Required:
a. What is the present worth of this investment?
b. Should the new computer system be purchased?

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 19:10
According to the textbook chapter, “the emotional connection of distinguishing differences and conflict”, which of the following groups of terms describes best the skills/resources that managers need when managing differences in their organization? energy, commitment, tolerance, and appreciation energy, adequate funding, tolerance, and appreciation funding, tolerance, a strong hr department, and tolerance energy, a strong hr department, patience, and strong leadership skills
Answers: 3
question
Business, 22.06.2019 19:30
One of the benefits of a well designed ergonomic work environment is low operating costs is true or false
Answers: 3
question
Business, 22.06.2019 21:30
Zara, a global retail and apparel manufacturer based in spain that has successfully implemented this idea by having a continuous flow of new products that are typically limited in supply. zara has created a system that draws its clientèle into its stores, on average, 17 times per year as compared to 4 times per year for most stores. how is zara using it to gain competitive advantage? what specific technologies are used by zara to maintain this advantage over its competition?
Answers: 3
question
Business, 23.06.2019 09:30
When gathering information about certain occupations, be sure to understand how you are paid. what is the difference between a salary and an hourly wage?
Answers: 2
You know the right answer?
Galvanized Products is considering purchasing a new computer system for their enterprise data manage...
Questions