Your company will generate $50,500 in cash flow each year for the next eleven years from a new information database. The computer system needed to set up the database costs $282,000. Assume you can borrow the money to buy the computer system at 8.50 percent annual interest.
Requirement 1:
Calculate the present value of the generated cash flows. (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Present Value =
Requirement 2:
Can you afford the new system?
Yes or No