Your company wants to buy an Enterprise Resource Planning (ERP) Software that will cost $50,000 to install and prepare for use. Your marketing manager estimates the ERP system will reduce costs by $15,000 over 4 years. You want to prepare a Net Present Value analysis and your comptroller has said to use a discount rate of 7% for each of the 4 years. Will the NPV be positive or negative and based on the NPV alone, would you purchase the software?

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