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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
You run a mail-order firm, selling upscale clothing. You are considering replacing your manual ordering system with a computerized system, to make your operations more efficient and to increase sales. (All the cash flows given below are in real terms.)
The real discount rate is 8%.
a. What is your expected cash flow at time=0? (1 point)
b. What is the expected incremental annual cash flow from computerizing the system? (3 points)
c. What is the net present value of this project? (1 point
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