The mayor of Trenton is considering the purchase of a new computer system for the city's tax department. The system costs $94,000 and has an expected life of five years. The mayor estimates the following savings will result if the system is purchased: Year or Period Savings PV of $1 at 9% PV of an ordinary annuity at 9% 1 $ 39,000 0.917 0.917 2 44,000 0.842 1.759 3 49,000 0.772 2.531 4 34,000 0.708 3.240 5 31,000 0.650 3.890 If Trenton uses a 9% discount rate for capital-budgeting decisions, the net present value of the computer system would be:

The mayor of Trenton is considering the purchase of a new computer system for the city's tax department. The system costs $94,000 and has an expected life of five years. The mayor estimates the following savings will result if the system is purchased: PV of an Year or PV of ordinary Period Savings $1 at 9% annuity at 9% 1 $39,006 0.917 0.917 IN 44, 000 0. 842 1.759 49, 000 0. 772 2.531 34, 000 0. 708 3.240 OOO'TE 0. 650 3.890 If Trenton uses a 9% discount rate for capital-budgeting decisions, the net present value of the computer system would be: Multiple Choice O $6,169. O $60,861. O $68,462. O $25,538. O $154,861.The mayor of Trenton is considering the purchase of a new computer system for the city's tax department. The system costs $94,000 and has an expected life of five years. The mayor estimates the following savings will result if the system is purchased: PV of an Year or PV of ordinary Period Savings $1 at 9% annuity at 9% 1 $39,000 0. 917 0.917 44, 000 0. 842 1.759 49,000 0.772 2.531 UIDWN 34, 000 0. 708 3.240 31, 000 0. 650 3.890 Trenton uses a 9% discount rate for capital-budgeting decisions. A salesperson from a different computer company claims that his machine, which costs $104,000 and has an estimated service life of four years, will generate annual savings for the city of $38,000. If the discount rate is 9%, the net present value of this system would be: Multiple Choice O $19,120. O $25,855 O $82,512. O $123,120