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This is the entire question, tv values are given in the question!!! Galvanized Products is considering the purchase of a new computer system for their
This is the entire question, tv values are given in the question!!!
Galvanized Products is considering the purchase of a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $100,000. Galvanized Products is planning to borrow 1/4th of the purchase price from a bank at 15% compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to last 5 years and has a salvage value of $5,000 at that time. Over the 5-year period, Galvanized Products expects to pay a technician $25,000 per year to maintain the system but will save $55,000 per year through increased efficiencies. Galvanized Products uses a MARR of 18%/year to evaluate investments. Click here to access the TVM Factor Table Calculator Parta What is the annual worth of this investment? $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 5. Save for Later Attempts: 0 of 3 used SubmitStep by Step Solution
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