Hazem capital budgeting analyst HADARA software, Inc. has been asked to evaluate a proposal. The manager of the automotive division believes that replacing the old software used on the existing computers will produce total benefits of $560000 (in foday's dollars) over the next 5 years. The existing software would produce beneffts of $350000 (also in today's dollars) over that same time period. An initial cash investment of $180000 would be required to install the new soffware. The manager estimates that the existing soffware can be sold for $50000. Show how HAZEM wil apply margihal cost-benefif analysis techniques to determine the following:

capital budgeting andlyst ADARA SOTTware , Inc., has been asked to evaluate a proposal. The manager of the automotive division believes that replacing the old software used on the existing computers will produce total benefits of $560000 (in today's dollars) over the next 5 years. The existing software would produce benefits of $350000 (also in today's dollars) over that same time period. An initial cash investment of $180000 would be required to install the new software. The manager estimates that the existing software can be sold for $50000. Show how HAZEM will apply marginal cost-benefit analysis techniques to determine the following: The marginal (added) benefits of the proposed new software? The marginal (added) cost of the proposed new software? The net benefit of the proposed new software