What is its npv and should the firm buy the computer

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Reference no: EM131969006

The law firm of Bushmaster and Bushmaster, LLC is considering investing in a complete small business computer system. The initial investment will be $35,000.

The computer system is expected to provide additional revenue of $16,000 per year for the next four years. However, in year four, the law firm would be required to spend $5,000 for upgrades. Its WACC is 12%. What is its NPV and should the firm buy the computer?

Reference no: EM131969006

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