Hello there - am stuck on the following question and wondered if anyone might be willing to help me? 
A quotation for a new IT system is as follows:-
SPRINT - £8000 up front and the balance £1500 to be paid on completion (paid in year 1).
PEGASUS - £11000
There will also be ongoing costs for maintenance:-
SPRINT - £800 per annum starting year 2
PEGASUS - £500 per annum starting year 1
It is also anticipated that here will be on-going training costs. These have been calculated as follows:-
SPRINT – Year 2 £700, Year 3 £ 500 and then £250 per year thereafter
PEGASUS – Year 1 and year 2 £500. After that, training can be done in house at an estimated cost of £100 per annum.
Calculate the Net Present Value of the options using a discount factor of 5%
Discount factors at 5% are;
Yr 1 = 0.952, Yr 2 = 0.907, Yr 3 = 0.864, Yr 4=0.823, Yr 5=0.784
If anyone's willing to help me with this I'd be ever so grateful. Thank youuuuu
A quotation for a new IT system is as follows:-
SPRINT - £8000 up front and the balance £1500 to be paid on completion (paid in year 1).
PEGASUS - £11000
There will also be ongoing costs for maintenance:-
SPRINT - £800 per annum starting year 2
PEGASUS - £500 per annum starting year 1
It is also anticipated that here will be on-going training costs. These have been calculated as follows:-
SPRINT – Year 2 £700, Year 3 £ 500 and then £250 per year thereafter
PEGASUS – Year 1 and year 2 £500. After that, training can be done in house at an estimated cost of £100 per annum.
Calculate the Net Present Value of the options using a discount factor of 5%
Discount factors at 5% are;
Yr 1 = 0.952, Yr 2 = 0.907, Yr 3 = 0.864, Yr 4=0.823, Yr 5=0.784
If anyone's willing to help me with this I'd be ever so grateful. Thank youuuuu