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Justice Enterprises is evaluating the purchase of a new computer network system. The new system would cost $27,000 and have a useful life of 6
Justice Enterprises is evaluating the purchase of a new computer network system. The new system would cost $27,000 and have a useful life of 6 years. At the end of the system's life, it would have a residual value of $5,000. Annual operating cost savings from the new system would be $9,300 per year for each of the six years of its life. Justice Enterprises has a minimum required rate of return of 14% on all new projects. The net present value of the new network system would be closest to: (Round any intermediary calculations and your final answer to the nearest dollar.) EB (Click the icon to view the present value of $1 table.) EB (Click the icon to view the present value of annuity of $1 table.) OA. $11,448 O B. $9,168. O C. $38,448. O D. $6,888
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