Neco 2022 Data Processing Question 13
Practice objective / multiple choice question 13 from the 2022 Neco Data Processing examination.
A small business is considering purchasing a computer system that costs \u20A6 1,200,000. The system has an estimated useful life of 4 years and a salvage value of \u20A6 200,000 at the end of year 4. Operating costs are \u20A6 80,000 per year. The system is expected to generate an additional revenue of \u20A6 350,000 each year. Using a discount rate of 10 % per annum, should the business purchase the system? State "Yes" if the net present value is positive, otherwise "No".
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About This Question
This is Neco 2022 Data Processing Question 13. It is one of the objective questions from the 2022 Neco Data Processing examination.
Difficulty level: Hard .
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