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# Granny's Choice - NPV

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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
(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'?

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b) Since the Net Present Value ...

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