The consulting company Olson Anderson & Thelen (0 A T) is in that never-ending budgeting phase of the year. Realizing that they couldn't defer a technology update any longer, the managers plan to replace all of the computers in the office. The old computers will be sold for market value. When the new computers reach the end of their useful lives. they will be sold as well. The cost of the combined new computers and annual software updates should be more than covered by efficiency gains and increased volume of sales —at least that's what the managers are expecting. Information related to this investment is as follows.

 The consulting company Olson Anderson & Thelen (0 A T) is in that never-ending budgeting phase of the year. Realizing that they couldn't defer a technology update any longer, the managers plan to replace all of the computers in the office. The old computers will be sold for market value. When the new computers reach the end of their useful lives. they will be sold as well. The cost of the combined new computers and annual software updates should be more than covered by efficiency gains and increased volume of sales —at least that's what the managers are expecting. Information related to this investment is as follows.

Determine if this investment makes sound financial sense for this company by completing the following.

 

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