1 Mark Marinara Hospital currently runs on a very old patient registration and discharge system. The system, based on special software, can be either updated or replaced with a new one. The following data have been gathered concerning these two alternatives: Purchase cost when new Accumulated Present System Update New System 150,000 100,000 Put have 90,000 depreciation Update cost today 80,000 Annual cash 30,000 20,000 operating costs Disposal value today 10,000 Disposal value in 2,000 15,000 five years Working capital 50,000 required Marinara Hospital uses a 12% discount rate and a total cost approach. Both alteratives are expected to have a useful life of five years. 000 The Net Present Value of the "Present System Update" alternative is: a) (259,426) b) (269,426) c) (228,232) d) (230,000) 5 Marks