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your firm has the option of making an investment in new software that will cost $222,483 today but will save the company money over several
your firm has the option of making an investment in new software that will cost $222,483 today but will save the company money over several years. You estimate thag the software provides the savings shown in the following table over its 5 year life. 1. what is the present value of the stream of savings estimates? round to nearest dollar 2. should the firm invest if it requires an annual return or 7% on all investments? Data table (Click on the icon here into a spreadsheet.) in order to copy the contents of the data table below Year Savings estimate 1 $58,000 2 $81,200 3 $75,400 4 $40,600 5 $23,200 Print Done
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