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What is the npv of the purchase

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Question - A new social-media marketing software and hardware system costs $150,000. The system increases revenues by $60,000/year for the next five years. Ongoing updates and support costs $10,000/year. The upfront cost will be depreciated straight line to zero over five years. The hardware will actually be worthless in five years. If we require a 10 percent return, what is the NPV of the purchase? Assume a tax rate of 21 percent.

Reference no: EM133147302

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