Question
1. Obsolete Technology is considering purchase of a new computer system to help handle its warehouse inventories. The system costs $50,000, is expected to last
1. Obsolete Technology is considering purchase of a new computer system to help handle its warehouse inventories. The system costs $50,000, is expected to last 4 years, and should reduce the cost of managing inventories by $22,000 a year. The opportunity cost of capital is 10%. Should Obsolete go ahead?
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Fundamentals Of Financial Planning
Authors: Michael A Dalton, Joseph Gillice
3rd Edition
1936602091, 9781936602094
