your department manager has proposed in the capital budget for 2016 that the organization acquire an upgrade for a piece of equipment that will reduce the labor requirements for the department by an estimated 175,000 annually. The cost of the upgrade will be 200,000 and will require annual maintenance cost of 60,000. The organization uses a 10% discount rate and requires a positive cumulative net present value by the end of the second year of such an investment. Using the discounted cash flow method, determine whether the investment will meet the organizations criteria

Capital cost ________

Annual operating cost______

Annual benefit______

Cumulative net present value_____

Does this investment meet the organizations investment criteria at a 10%discount rate?