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Your firm has the option of making an investment in new software that will cost $212,437 today, but will save the company money over several

Your firm has the option of making an investment in new software that will cost $212,437 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 9% on all investments?

Year

Savings estimate

1

$58,000

2

$81,200

3

$75,400

4

$40,600

5

$

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