Connsidering purchasing new software suite

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Reference no: EM131063988

You are connsidering purchasing a new software suite for your consulting company. You estimate that the software will have a useful life of 5 years, with negligible market value at that point. The annual net positive cash flows (including both increased revenue and decreased cost) resulting from this software are estimated to be $60,000 in the 1st year, growing by 8% each year to the end of the useful life. to earn 18% rate of return on your investment, what would be the maximum amount that you should spend on this software suite?

Reference no: EM131063988

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