14-10 This project provides you with an opportunity to use spreadsheet software to use the capital budgeting models discussed in this chapter and its Learning Tracks to analyze the return on an investment for a new computer-aided design (CAD) system.

Your company would like to invest in a CAD system that requires purchasing hardware, software, and networking technology as well as expenditures for installation, training, and support. MyLab MIS 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.