A M N R c D E G H THIS SHEET NOT DONE YET When you wewed with this change the DONE ALT-NPV Merlot City is planning to purchase a large computer. The computer system requires a payment now for hardware in the amount of $100,000 and software in the amount of $40,000. The new computer would result in savings of $32.000 per year. A system upgrade would be necessary in year 3 in the amount of $22,000. At the end of its 5-year life, the computer could be sold for salvage value of $15,000 Additionally, spare computer time could be sold for $10,000 in years 1-5. Compute the NPV using a cost of capital of 8.00% Use positive numbers for cash inflows, use negative numbers for cash outflows. Years 0 1 2 3 4 5 Purchase of Computer Hardware Purchase of Computer Software Total Project Cost in Time Periodo Savings System Upgrade Revenue from Time Sharing Salvage Value Net Annual Cash Flows Discount Factors at 8% Discounted Cash Flows Net Present Value Compute the internal rate of return for this project using Excel's IRR function. For your convenience, here are the cash flows: - 140000 $42,000 $42,000 $20,000 $42.000 $57,000 RA PV OF $1.00 20 3N 60 75 ON TON 0.9301 0.9004 0.9709 0.9615 0.9434 0.9524 12 0.9346 0.9259 0.9174 0.9091 0.9009 0.9803 0.9612 0.9426 0.9246 0.9070 0.0329 0.8900 0.8734 0.8573 0.8417 0.9706 0.8264 0.8116 0.7972 0.9423 0.9151 0.8890 0.000 0.836 0.816) 4 0.7910 0.7722 0.7513 0.9610 0.7312 0.9238 0.8885 0.7118 0.8548 0.6227 0.7921 0.7629 0.7350 0.6587 0.9515 5 0.7064 0.6830 0.9057 0.8626 0.8219 0.7835 0.7473 0.6355 0.7130 06806 0 6493 0.6209 0.5935 0.5674 PV OF AN ANNUITY OF $1.00 18 4 ON 7N IN ON 10 0.90 0.9804 0.9709 0.9615 0.9524 128 0.9434 0.9346 0.9250 0.9174 1.9704 0.9091 08929 0.9005 1.9416 1.9135 1.8861 1.8594 1.8334 1. BOBO 1.7833 1.751 1.7355 1.7125 1.6801 3 2.9410 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 4 2.4018 3.8077 3.71713.6299 3.9020 5 3.4651 3.5460 33072 3 3121 3.2397 3.1609 3.1024 3.0373 4.8534 4.5797 4.4518 4.3295 4 2124 41002 3.99273.8897 3.7908 36959 3.8048 1. ALT-BASIC-JO-ENTRIES 2. ALT-OVER-UNDER 3. BREAKEVEN 6. NPV 7. BUDGETS 13N 0.8850 0.872 0.7831 0.7695 0.6750 0.6130 0.5921 0.5428 0.5194 158 0.8596 0.7561 0.6575 0.5718 0.8850 1.6681 23612 2.9745 1 15 0.8772 0.8696 1.6467 2.3210 2.9137 28550