Question
A manager of the engineering department of Manchester University is contemplating acquiring 120 computers. The computers will cost 240,000 cash, have zero terminal salvage value,
A manager of the engineering department of Manchester University is contemplating acquiring 120 computers. The computers will cost 240,000 cash, have zero terminal salvage value, and a useful life of 3 years. Annual cash savings from operations will be 110,000. The required rate of return is 14%. There are no taxes.
1. Compute the NPV.
2. Should the engineering department acquire the computers? Explain.
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Labor and Employment Law Text and Cases
Authors: David Twomey
15th edition
1133188281, 978-1133711841, 1133711847, 978-1285247632, 978-1133188285
