A new computer network system is being considered for an organization. The initial cost of the system is $375,000. Annual maintenance and operating costs would be $22,000 per year. The organization has a desired rate of interest of 10% for its projects. The expected annual income from the computer network are expected to be $97,000. Determine the present worth if they are going to use it for four (4) years. PW = -$13,925 PW=-$13,726 OPW=-$11,725 PW = $15,725.

A new computer network system is being considered for an organization. The initial cost of the system is $375,000. Annual maintenance and operating costs would be $22,000 per year. The organization has a desired rate of interest of 10% for its projects. The expected annual income from the computer network are expected to be $97,000. Determine the present worth if they are going to use it for four (4) years. PW = -$13,925 PW=-$13,726 OPW=-$11,725 PW = $15,725.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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