For the next four years the savings will be 20000 per year


An information system will cost $95,000 to implement over a one-year period and will produce no savings during that year. When the system goes online, the company will save $30,000 during the first year of operation. For the next four years, the savings will be $20,000 per year. Assuming a 12% discount rate, what is the NPV of the system? Write a response of approximately 250 words summarizing how you derived at your answer. *I have the chart but need a explanation on how you derived at the answer.

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Operation Management: For the next four years the savings will be 20000 per year
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