Question
Your firm has the option of making an investment in new software that will cost $130,000 today and is estimated to provide the savings shown
Your firm has the option of making an investment in new software that will cost $130,000 today and is estimated to provide the savings shown in the following table over its 5-year life, Year Savings estimate 1 $35,000 2 $50,000 3 $45,000 4 $25,000 5 $15,000 . Should the firm make this investment if it requires a minimum annual return of 9% on all investments? 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 9% on all investments?(Select the best answer below.) Yes No
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