How much can be spent on the new system

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Reference no: EM131586368

A private hospital plans to replace its manual telephone answering system with an automated one. Currently 5 people (2 on first shift, 2 on second, and one on third) answer telephones. Their annual wages are exist31, 250 per person. Operating and maintenance of the new automated system will be 6.5% of the first cost of the system. The income tax rate is 40% and straight line depreciation will be used over a 15 year life with no salvage. The hospital uses a MARR of 8%. How much can be spent on the new system?

Reference no: EM131586368

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