14-10 This project provides you with an opportunity to use spreadsheet software to use the capital budgeting models discussed in this chapter to analyze the return on an investment for a new computer-aided design

(CAD) system.

Your company would like to invest in a new computer-aided design (CAD) system that requires purchasing hardware, software, and networking technology, as well as expenditures for installation, training, and support. MyMISLab contains tables showing each cost component for the new system as well as annual maintenance costs over a five-year period, along with a Learning Track on capital budgeting models. You believe the new system will reduce the amount of labor required to generate designs and design specifications, thereby increasing your firm’s annual cash flow.

• Using the data provided in these tables, create a worksheet that calculates the costs and benefits of the investment over a five-year period and analyzes the investment using the four capital budgeting models presented in this chapter’s Learning Track.

• Is this investment worthwhile? Why or why not?