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Your firm has the option of making an investment in new software that will cost $126,069 today, but will save the company money over several

Your firm has the option of making an investment in new software that will cost $126,069 today, but will save the company money over several years. You estimate that the software will provide the savings shown in the following table over its 5-year life, Should the firm make this investment if it requires a minimum annual return of 11% on all investments?

Year

Savings estimate

1

$36,000

2

$50,400

3

$46,800

4

$25,200

5

$14,400

The present value of the stream of savings estimates is___ (Round to the nearest dollar.)Should the firm make this investment if it requires a minimum annual return of 11% on all investments?(Select the best answer below.)

Yes or No

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