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Part A is wrong what's the correct solution. Galvanized Products is considering purchasing a new computer system for their enterprise data management system. The vendor
Part A is wrong what's the correct solution.
Galvanized Products is considering purchasing a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $90,000. Galvanized Products is planning to borrow 1/4 th of the purchase price from a bank at 12.00% compounded annually. The loan is to be repaid using equal annual payments over a 3 -year period. The computer system is expected to last 5 years and has a salvage value of $5,800 A that time. Over the 5 year period, Galvanized Products expects to pay a technician $24,000 per year to maintain the system but will save $51,000 per year through increased efficiencies. Galvanized Products uses a MARR of 15.00% year to evaluate investments. a. What is the present worth of this investment? $ Do all calculations to 5 decimal places and round final answer to 2 decimal places. Tolerance is \pm 1.00 . b. What is the decision rule for judging the attractiveness of investments based on present worth? c. Should the new computer system be purchased Step by Step Solution
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