Requires a minimum annual return

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Reference no: EM131580889

Your firm has the option of making an investment in new software that will cost $130,000 today and is estimated to provide the savings shown in the following table over its 5-year life. Year Savings estimate 1 $35,000 2 50,000 3 45,000 4 25,000 5 15,000 Should the firm make this investment if it requires a minimum annual return of 9% on all investments?

Reference no: EM131580889

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