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Blossom Corp. management is investigating two computer systems. The Alpha 8300 costs $3,243,425 and will generate cost savings of $1,302,825 in each of the next
Blossom Corp. management is investigating two computer systems. The Alpha 8300 costs $3,243,425 and will generate cost savings of $1,302,825 in each of the next five years. The Beta 2100 system costs $3,671,500 and will produce cost savings of $1,054,750 in the first three years and then $2 million for the next two years. The company's discount rate for similar projects is 14 percent.
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