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BIM Software Company considers purchasing a computer system in 2 0 2 4 . The initial capital cost of the computer system is $ 3
BIM Software Company considers purchasing a computer system in The initial capital cost of the computer system is $ The system will be implemented in the license is valid until and it will be sold for $ at the end of It is estimated that a total of officers' salary can be saved on the year of implementation. There is also an anticipated saving of $ per year from due to enhanced operations.
The yearly staff cost of an officer is $ and the system maintenance cost is fixed at $ per year.
a Prepare a table as below for the cash flow of the purchase.
b Calculate the NPV of the purchase based on the cost of capital at
c Is this a good investment? Explain.
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