The engineering team at Manueľ's Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $ 425,000 initially and is expected to increase revenue $ 105,000 per year every year. The software and installation from Vendor B costs $ 235,000 and is expected to increase revenue $ 105,000 per year. Manuel's uses a 4-year planning horizon and a 13.0 % per year MARR. Part a What is the present worth of each investment? Vendor A: $ Vendor B: $
The engineering team at Manueľ's Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $ 425,000 initially and is expected to increase revenue $ 105,000 per year every year. The software and installation from Vendor B costs $ 235,000 and is expected to increase revenue $ 105,000 per year. Manuel's uses a 4-year planning horizon and a 13.0 % per year MARR. Part a What is the present worth of each investment? Vendor A: $ Vendor B: $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The engineering team at Manueľ's Manufacturing, Ic., is planning to purchase an enterprise resource planning (ERP) system. The
software and installation from Vendor A costs $ 425,000 initially and is expected to increase revenue $ 105,000 per year every year.
The software and installation from Vendor B costs $ 235,000 and is expected to increase revenue $ 105,000 per year. Manuel's uses a
4-year planning horizon and a 13.0 % per year MARR.
Part a
What is the present worth of each investment?
Vendor A: $
Vendor B: $
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