A food company called 'Granny's Choice' wants to introduce a new computer system for its perishable products warehouse. The costs and benefits are as follows:
Years Costs Benefits
1 33,000 21,000
2 34,600 26,200
3 36,300 32,700
4 38,100 40,800
5 40,000 51,000
6 42,000 63,700
a)Given a discount rate of 8 percent (0.08), perform present value analysis on the data for 'Granny's Choice'.
(Please use the formula
(1+i)n to find the multipliers for years 1to 6, where 'i' represents the discount rate and 'n' represents the number of periods).
b) What is your recommendation for 'Granny's Choice'?© BrainMass Inc. brainmass.com June 3, 2020, 9:09 pm ad1c9bdddf
Please see the attached file.
b) Since the Net Present Value ...
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