Your firm has the option of making an investment in new software that will cost

$130,000

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,

LOADING...

.

Should the firm make this investment if it requires a minimum annual return of

9%

on all investments?

Question content area bottom

Part 1

The present value of the stream of savings estimates is

$enter your response here.

(Round to the nearest dollar.)

Part 2

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