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1. You are given the following financial data about the new system to be implemented in your company. Investment Cost at Year 0 23 000
1. You are given the following financial data about the new system to be implemented in your company. Investment Cost at Year 0 23 000 Investment Cost at Year 1 18 000 Useful Life 10 years Salvage Value at the end of 11 years 7 000 Annual Sales Revenue 19 000 Annual Expenses 6 000 MARR 10% Note: The first revenues and expenses will occur at the end of Year 2. a) Prepare the project cash flow table based on the given information. b) Determine the discounted payback period if the cost of fund is 10%. c) Is the new system acceptable? Justify your answer using PWA, FWA, AE, ROR and CAGR tools
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