1. Golden Opportunities, a not-for-profit community association, is considering the proposed acquisition of a new training and education software system. The price of the software system is $850,000, and it has a life expectancy of 7 years. The system will be sold at the end of the life span, with salvage value of $180,000 to be paid over the final two years. While this new system will have no impact on the number of training sessions or reimbursement, it is however expected to save the association $7,000 per year in operating costs. On average, the instructors train 25 people per day for 280 days per year. Training materials cost approximately $25 per person. Grant funding provides reimbursement of $90 for each person registered for training. Year one expenses include instructor labor ($80,000), building operations (rent and utilities of $30,000 and $20,000 respectively), and overhead of $5,000. Costs increase by 5% annually. Revenues increase by 7% annually. The cost of capital is 12%. Calculate the net cash flows and the NPV. (20 points)