Solution-Should purchase the computer system

Should purchase the computer system

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Question 1: As the CFO of your company, it falls to you to make the ?nal decision on large expenditures. Recently, your controller has proposed purchasing a new computer system at a cost of $50,000. He believes the system will deliver savings of $60,000 in the accounting department and could be useful to other departments as well. Your treasurer takes a decidedly different View of the proposal. She claims that the company will have to borrow money to buy the computer system, and this will cost $11,000 in interest. As well, she is concerned that the amount of savings promised by the controller won't materialize. Should you purchase the computer system?

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Should purchase the computer system

Reference no: EM132518656

Reference no: EM132518656

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