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Can you solve this please ody/Downloads/Genec 20anagement Accounting input QUESTION 1 (20 Marta Agro Tech Corporation is considong investing in a new IT system Selling
Can you solve this please
ody/Downloads/Genec 20anagement Accounting input QUESTION 1 (20 Marta Agro Tech Corporation is considong investing in a new IT system Selling to its clients. The company has identified to new possible systems, which would be suitable for its customers Only one of the systems can be selected and the directors are looking for guidance on which system would be the best. The company requires a 15% rate of retum on practs of this nature The installation cost per project will be R100 000 each, while systems can be disposed for R200 000 each after five years life span Cashflows for Agro Tech Corporation IT System (Rands) PERIOD 0 1 2 4 5 SYSTEMA 4 000 000 R1 800 000 R1 700 000 R1 600 000 R1 500 000 R1 400 000 SYSTEM B-3 500 000 1 500 000 1 500 000 1 500 000 1 400 000 R1 300 000 Requrud 11 Demine the payback pened in years mints and days for both som mark 12 Based on your calculators ir 11 which system should Agro Tech Corporation.consider (2 13 Cicibe the Net Present Value for both me the country HomeStep by Step Solution
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