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29. Bourne Security Systems is evaluating 2 new computer systems to support its operations. The Super Maxx system will cost Bourne SS $5 million to

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29. Bourne Security Systems is evaluating 2 new computer systems to support its operations. The Super Maxx system will cost Bourne SS $5 million to acquire, will have a 5-year life, will need a $1.5 million upgrade (ie, an additional cost) at the end of year 2. and will have after-tax annual cash costs of $1 million per year for five years. The Eagle Eye system is Bourne's alternative and has a 3-year life. You have calculated that the EAA for Eagle Eye is $2.5 million. Advise Bourne SS on the choice of computer systems using the EAA method (ie. Eagle Eye vs Super Maxx). Assume Bourne's cost of capital for this project is 2.5%. Note all previously cited figures are cash outflows or negative numbers. (10 points)

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