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Bell Mountain Vineyards is considering updating its current manual accounting system with a high-end electronic system

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Question;Bell Mountain Vineyards is considering updating its current manual;accounting system with a high-end electronic system. While the new accounting;system would save the company money, the cost of the system continues to;decline. The Bell Mountain?s opportunity cost of capital is 13.6 percent, and;the costs and values of investments made at different times in the future are;as follows;Year Cost Value of Future Savings;(at time of purchase);0 $5,000 $7,000;1 4,700 7,000;2 4,400 7,000;3 4,100 7,000;4 3,800 7,000;5 3,500 7,000;Calculate the NPV of each choice. (Round answers to the;nearest whole dollar, e.g. 5,275.);The NPV of each choice is;NPV0 = $;NPV1 = $;NPV2 = $;NPV3 = $;NPV4 = $;NPV5 = $;Suggest when should Bell Mountain buy the new accounting;system?

 

Paper#50606 | Written in 18-Jul-2015

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