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Savage Manulacturing is tying to declde whether to Invest in a new CAD system for the design of its new front discharge concrete truck. The

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Savage Manulacturing is tying to declde whether to Invest in a new CAD system for the design of its new front discharge concrete truck. The intilal purchase price for the CAD system from Computercilow Graphics would be \$12,500 for the hardware, software, and initial setup cost. An additional $2,500 would be required to rewire the drafting offlice for the CAD system. This CAD system is expected to reduce design times as well as reducing duplication, reducing engineering changeovers, and improving overall product quality. The marketing and accounting departments have provided the following estimates for the after-tax cash flows for the expectod savings from the CAD system over its five-yoar lifo

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