Question 4. Your company will generate GH¢ 55,000 in annual revenue each year for the next eight years from a new information database. The computer system needed to set up the database costs GH¢...

Question 4.

Your company will generate GH¢ 55,000 in annual revenue each year for the next eight years from a new information database. The computer system needed to set up the database costs GH¢ 250,000. If you can borrow the money to buy the computer system at 7.5 percent annual interest, can you afford the new system?

Question 5.

First National Bank charges 7.5 percent compounded quarterly on its business loans. First United Bank charges 7.5 percent compounded semi-annually. As a potential borrower, which bank would you go to for a new loan?