The mayor of Smalltown,Western Australia,is considering the purchase of a computer system to automate the city's rate collections.The system costs $75 000 and has an estimated life of five years.The mayor estimates the following savings will result if the system is purchased.If Smalltown uses a 10 per cent discount rate for capital budgeting decisions,what is the net present value of the computer system?

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The Answer of The mayor of Smalltown,Western Australia,is considering the purchase of a computer system to automate the city's rate collections.The system costs $75 000 and has an estimated life of five years.The mayor estimates the following savings will result if the system is purchased.If Smalltown uses a 10 per cent discount rate for capital budgeting decisions,what is the net present value of the computer system?

The Mayor of Smalltown,Western Australia,is Considering the Purchase of a Computer