Can company afford the new system


Calculating Annuity Values.

Response to the following problem:

Birdsville Ltd will generate $50 000 in revenue each year for the next nine years from a new information database. The computer system needed to set up the database costs $300 000. If Birdsville can borrow the money to buy the computer system at 8.25% annual interest, can Birdsville afford the new system?

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Financial Accounting: Can company afford the new system
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