Present value of the generated cash flows

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Reference no: EM1344999

Your company will generate $46,500 in cash flow each year for the next twelve years from a new information database. The computer system needed to set up the database costs $266,000. Assume you can borrow the money to buy the computer system at 9.00 percent annual interest.

1. Evaluate the present value of the generated cash flows.???

2. can you afford the new system?

Reference no: EM1344999

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