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  3. 0 1 the company abc needs to acquire a new operati

0 1 The company ABC needs to acquire a new operating system. They received two...

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Accounting

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0 1 The company ABC needs to acquire a new operating system. They received two bids for two different providers. System A has a 5-year life, but it is expensive, while system is less expensive but has to be replaced after 3 years. The cost of purchasing both system and the cost of operating them annually over their expected lives are as following: Year System A System 8 (85,000) (45.000) 2,000) 3,000) 2 (2,000) (4.000) (2.000) (5000) (4.000) 5 (4,000) Conduct an analysis to evaluate this investment and recommend the system that the company should acquire. The required rate of return is 10 percent

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