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A software upgrade will lower annual costs by $450,000 per year. It will last 7 years before it becomes obsolete The initial cost for the

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A software upgrade will lower annual costs by $450,000 per year. It will last 7 years before it becomes obsolete The initial cost for the software is $2,000,000 and it will require $10,000 of annual fees throughout its life. The software initially frees up net working capital by $25.000 as soon as you purchase it. However, at the end of its life the networking capital will be needed again. Hint. the NWC at the beginning is not the usual contribution"/use of cash. instead the software is "freeing up" net working capital. Your discount rate is 12% What is the NPV of this software upgrade

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