What is the PW analysis for Option B

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Question - You work for Anadarko Petroleum in their Global EHS Department. You have been tasked in the analysis of the present worth of two new injury-tracking software packages. Package A has an initial cost of $12,400. It has an annual maintenance cost of $1,200, a projected cost benefit of $4100 annually, and the company will buy it back from you in 8 years for $2,200. Package B has an initial cost of $14,006, an annual maintenance cost of $800, a projected cost benefit of $5800 annually, and no salvage value in 6 years. Assume 3.2% interest. What is the PW analysis for Option B?

Reference no: EM133145680

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