Considering new inventory system

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Reference no: EM132037898

Siegmeyer corp. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. Rent-to-own required rate of return is 8%. based on the npv calculated previously, siegmeyer should __________ the project because it's NPV is greater than _____.

Reference no: EM132037898

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