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This is a bonus questions Hazem capital budgeting analyst HADARA software, Inc., has been asked to evaluate a proposal. The manager of the automotive division

This is a bonus questions Hazem capital budgeting analyst HADARA software, Inc., has been asked to evaluate a proposal. The manager of the automotive division believes that replacing the old software used on the existing computers will produce total benefits of $350000 (in today's dollars) over the next 5 years. The existing software would produce benefits of $350000 (also in today's dollars) over that same time period. An initial cash investment of $220000 would be required to install the new software. The manager estimates that the existing software can be sold for $60000. Show how HAZEM will apply marginal cost-benefit analysis techniques to determine the :following The marginal (added) benefits of the proposed ?new software The marginal (added) cost of the proposed ?new software The net benefit of the proposed new ?software

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