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Your firm is considering the purchase of a new computer system. The necessary information to make the decision is provided below. What is the NPV

Your firm is considering the purchase of a new computer system. The necessary information to make the decision is provided below. What is the NPV and should the firm make the investment in the new computer system?

Cost of computer system-69,000

Lifetimecomputer (years)4

Cost savings from new system22,000

Cost of capital0.10

Answers:

737.04 Yes

19000.00 Yes

-8894.82 No

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