The engineering team at Manuels Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $405,000 initially and is expected to increase revenue $120,000 per year every year. The software and installation from Vendor B costs $295,000 and is expected to increase revenue $105,000 per year. Manuels uses a 4-year planning horizon and a 11.0 % per year MARR.

What is the present worth of each investment?

What is the decision rule for determining the preferred investment based on present worth ranking?

Which ERP system should Manuel purchase?