We are considering the purchase of a 100000 human resource


We are considering the purchase of a $100,000 human resource computer system. It will be depreciated straight-line to zero over its 5-year life. It will be worth $20,000 at the end of the time. The system will save us $40,000 before taxes in management costs. The relevant tax rate is 30%. Meanwhile, the system will also free up one headcount in human resources department, with annual salary of $50,000. Calculate the project NPV with discount rate of 12%

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Financial Management: We are considering the purchase of a 100000 human resource
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