ABC is considering the purchase of a new computer system for the social marketing department. The system costs $375,000 and has an expected life of five years, salvage value of $15,000, and networking capital of $50,000. The manager estimates the following savings will result if the system is purchased:

YEAR	SAVINGS
1	$100,000
2	125,000
3	130,000
4	85,000
5	125,000

Required Answers:

1. If ABC uses a 10% discount rate for capital-budgeting decisions, the net present value of the computer system would be?

2. If ABC uses a 10% discount rate for capital-budgeting decisions. What is the payback period of the computer system?

3. What is the net present value of the computer system?

4. What is the internal rate of return for the computer system?

Please help me understand the way you enter things into a spreadsheet so that way i can understand how you got the answers.

ABC is considering the purchase of a new computer system for the social marketing department. The system costs $375,000 and has an expected life of five years, salvage value of $15,000, and networking capital of $50,000. The manager estimates the following savings will result if the system is purchased: (10 points) Savings Year or Period 1 2 3 4 5 $100,000 125,000 130,000 85,000 125.000 If ABC uses a 10% discount rate for capital-budgeting decisions, the net present value of the computer system would be: Required: If ABC uses a 10% discount rate for capital-budgeting decisions. What is the payback period of the computer system? What is the net present value of the computer system? What is the internal rate of return for the computer system