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?
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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Engineering Economy
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
15th edition
978-0132554909
