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annisbianon Computerized Bookkeeping System and NPV Analysis. Zeta Corporation is contemplating purchase of a minicomputer in order to reduce the cost of its data processing
annisbianon Computerized Bookkeeping System and NPV Analysis. Zeta Corporation is contemplating purchase of a minicomputer in order to reduce the cost of its data processing operatie Currently, the manual bookkeeping system in use involves the following annual cash expen Salarics Payroll taxes and fringe benefits Forms and supplies $84,000 24,000 6,000 $114,000 The present equipment is fully depreciated and has no salvage value. The cost of computer, including installation and software, is $100,000. This entire amount is deprecia for income tax purposes on a double declining basis at the rate of 20 percent per annum. Annual costs of the computerized bookkeeping system are estimated and given below Salaries Payroll taxes and fringe benefits Forms and supplies $40,000 8,000 6,000 $51.000
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