E5–4 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.

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

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Year 12 345 Savings estimate $35,000 50,000 45,000 25,000 15,000