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The AA Company is considering buying a new computer system. The relevant capital budgeting information...

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Accounting

The AA Company is considering buying a new computer system. The relevant capital budgeting information is provided below (ignore income tax in the problem):
\table[[\table[[Cost of the new computer system],[Annual savings in]],$,120,000],[\table[[Annual savings in cash operating cost],[Life of the svstem in]],$,20,000],[\table[[Life of the system in years],[Required rate]],,8],[Required rate of return,,6%
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