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WITH EXCEL A company is evaluating whether to make changes to its IT department. accounting. Its MARR is 15% per year. The current expenses of
WITH EXCEL A company is evaluating whether to make changes to its IT department. accounting. Its MARR is 15% per year. The current expenses of the accounting department amount to $180,000 annually. One option is to outsource the company's accounting to a outside company that will charge $150,000 per year. Another option is to buy a new system. bookkeeping and do a restructuring of the department that will result in savings of $65,000 by year. The investment required for the system and the restructuring is $120,000. a) Using a 10-year study period, what should the company do? Use NPV b) Using a 5-year study period, what should the company do? Use NPV
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