The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $380,000 initially and is expected to increase revenue $125,000 per year every year. The software and installation from Vendor B costs $280,000 and is expected to increase revenue $95,000 per year. Manuel's uses a 4- year planning horizon and a 10% per year MARR. Click here to access the TVM Factor Table Calculator Part a
The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $380,000 initially and is expected to increase revenue $125,000 per year every year. The software and installation from Vendor B costs $280,000 and is expected to increase revenue $95,000 per year. Manuel's uses a 4- year planning horizon and a 10% per year MARR. Click here to access the TVM Factor Table Calculator Part a
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Answer neatly ASAP , will give you thumbs up
Transcribed Image Text:The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The
software and installation from Vendor A costs $380,000 initially and is expected to increase revenue $125,000 per year every year.
The software and installation from Vendor B costs $280,000 and is expected to increase revenue $95,000 per year. Manuel's uses a 4-
year planning horizon and a 10% per year MARR.
Click here to access the TVM Factor Table Calculator
Part a
What is the discounted payback period of each investment?
Vendor A:
Vendor B:
years
years
Carry all interim calculations to 5 decimal places and then round your final answers to 1 decimal place. The tolerance is ±0.2.
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