(a) The MIS manager has estimated that if a new order entry system is installed for the organisation, there will be a saving in labour costs by $ 35,000 each year for the next 5 years. The purchase price (including installation and testing) of the new system is $ 1,25,000. What is the net present value of this investment if the cost of capital is 10% per year ? Will there be any change in NPV if inflation is estimated at 4% per year for the next five years?