Marine Industrial Coatings, Inc. is considering replacing its existing computer system with a new computer system. The new system can offer considerable savings in computer processing and inventory management costs. Information about the existing system and the new system follow: 
-Should Marine Industrial Coatings replace the existing computer system with the new system? What are the cash flow savings or additional cost over the 5 years? Ignore income taxes.
A) Yes replace, net savings of $5,000.
B) Yes replace, net savings of $15,000.
C) No do not replace, additional costs of $5,000.
D) No do not replace,additional costs of $3,500.
Correct Answer:
Verified
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