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A consulting firm is considering the purchase a new computer drafting system for $150,000. It is expected this will eliminate one employee, who with benefits
A consulting firm is considering the purchase a new computer drafting system for $150,000. It is expected this will eliminate one employee, who with benefits earns $35,000 annually. Annual operating and maintenance cost for the new system will be $6,000. The firm believes that in 9 years the system will be obsolete and have a salvage value of 10% of the first cost. Using as an annual interest rate of 10%, decide on the economic viability of the plan. Use present worth for comparison. a) PW(Computer)=$188,160; PW(Employee)=$201,565. Choose computer drafting system b) pw(Computer)=$178,160; PW(Employee)=$211,565. Choose employee. c) pw(Computer)=$178,160; PW(Employee)=$201,565. Choose computer drafting system d) pw(Computer)=$178,160; PW(Employee)=$201,565. Choose employee e) PW(Computer)=$198,160; PW(Employee)=$201,565. Choose computer drafting system
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