Justice Enterprises is evaluating the purchase of a new computer network system. The new system would cost $24,000 and have a useful life of 5years. At the end of the system's life, it would have a residual value of $2000. Annual operating cost savings from the new system would be $8500 per year for each of the five years of its life. Justice Enterprises has a minimum required rate of return of 12% on all new projects. The net present value of the new network system would be closest to: (Round any intermediary calculations and your final answer to the nearest dollar.) Present Value of $1
Present Value of Annuity of $1

Question

Justice Enterprises is evaluating the purchase of a new computer network system. The new system would cost $24,000 and have a useful life of 5years. At the end of the system's life, it would have a residual value of $2000. Annual operating cost savings from the new system would be $8500 per year for each of the five years of its life. Justice Enterprises has a minimum required rate of return of 12% on all new projects. The net present value of the new network system would be closest to: (Round any intermediary calculations and your final answer to the nearest dollar.) Present Value of $1
 Present Value of Annuity of $1

Quizplus · Accepted Answer

The Answer of Justice Enterprises is evaluating the purchase of a new computer network system. The new system would cost $24,000 and have a useful life of 5years. At the end of the system's life, it would have a residual value of $2000. Annual operating cost savings from the new system would be $8500 per year for each of the five years of its life. Justice Enterprises has a minimum required rate of return of 12% on all new projects. The net present value of the new network system would be closest to: (Round any intermediary calculations and your final answer to the nearest dollar.) Present Value of $1
 Present Value of Annuity of $1

Justice Enterprises Is Evaluating the Purchase of a New Computer