You are the accounting for Just Words Limited Liability Partnership. The company has decided to upgrade its equipment. It currently uses a very popular word processing program. The company wishes to invest in a more up-to-date software and improve printing capabilities. The company has two options from which to choose.

Option 1 The company will keep its existing computer system, and upgrade its word processing program. The memory of each individual work station would be enhanced and a larger, more efficient printer would be installed. This option also allows for better telecommunications equipment, which would allow for electronic transmission of documents.

Option 2 - The company would invest in an entirely different and new computer system. The software is extremely impressive and it comes with individual laser printers. This software is not well known and does not connect well with known software.

Option 1 Option 2

Initial Investment $95,000 $240,000

Net Present Value $0 $0

Prepare a brief report for management. Make a recommendation for one system or the other, using the information given. Remember: not all decisions are financial. Make sure you back up your recommendation.

will give good rating