Homework Assignment – Week 2

You need a new computer system for your workplace. You are deciding between a more expensive system (A) with a price of $225,000, or a less expensive system (B) with a price of $150,000. The expected cash flows from these systems are: Year System A System B. 1 $80,000 $80,000. 2 $25,000 $25,000. 3 $25,000 $25,000. 4 $25,000 $25,000. 5 $25,000 ... ................
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