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A printing company requires a new CRM software system for attracting new customers. Model CRM-239 software will last for five years and costs $79,000. This
A printing company requires a new CRM software system for attracting new customers. Model CRM-239 software will last for five years and costs $79,000. This software is believed to generate an annual profit of $22,000. Model CRM-ARC, also with a five year life, costs $97,000 and will return an annual profit of $27,000. Neither piece of software will have resale value. If the company's cost of capital is 5.5%, which model should be purchased and what is the current economic advantage in dollars
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