What is the npv for buying the new system

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You are contemplating a new automatic surveillance system to replace the current contract security system. It will cost RM450,000 to get the new system and additional RM30,000 to install the system. The system will be depreciated simplified straight-line to zero over the system's four-year expected life. The system is expected to be worth RM250,000 at the end of the four years. The new system will save RM150,000 per year before taxes. If the tax rate is 25 percent and the requred return is 15 percent, what is the NPV for buying the new system?

Reference no: EM132578157

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