question archive (30 blarks) A computing corporation is considering updating its automated inventory control system
Subject:EconomicsPrice:9.82 Bought3
(30 blarks) A computing corporation is considering updating its automated inventory control system. The supplier has estimated the ?rst cost as $2 300 000 and the annual savings as 5880 000; after its 10—year life, it will have a salvage value of $200 000. The tax rate is 45 percent and the company uses an after—tax RIARR of 10 percent. (Hint: Look up the CCA class and depreciation rate in the course slides) a) What is the present worth of the new system? b) Should the corporation make this investment?
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