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The finance manager of Cinteck must choose between two new computer operating systems, Linux and Windows, to replace the existing system to support its ongoing
The finance manager of Cinteck must choose between two new computer operating systems, Linux and Windows, to replace the existing system to support its ongoing operations. System Linux costs $40,000 and requires annual maintenance costs of $6,000 during its three-year life. System Windows costs $55,000 and requires annual maintenance cost of $4,500 during its five-year life. The appropriate discount rate is 7 percent. If both systems are replicable, which system should the firm choose?
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