Calculate the present value of the generated cash flows

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Reference no: EM13295503

Your company will generate $45,000 in cash flow each year for the next nine years from a new information database. The computer system needed to set up the database costs $260,000. Assume you can borrow the money to buy the computer system at 8.25 percent annual interest. Requirement 1: Calculate the present value of the generated cash flows. (Do not include the dollar sign ($).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).) Present value $ Requirement 2: Can you afford the new system?

Reference no: EM13295503

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