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AZ The management of Kimco is evaluating replacing their large mainframe computer with a modern network system that requires much less office space. The network

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AZ The management of Kimco is evaluating replacing their large mainframe computer with a modern network system that requires much less office space. The network would cost $600,645.00 (including installation costs) and due to efficiency gains, would generate $124,365.00 per year in operating cash flows accounting for taxes and depreciation) over the next five years. The old mainframe has a remaining book value of $46,240.00 and would be immediately donated to a charity for the tax benefit. Kimco's cost of capital is 11.00% and the tax rate is 38.00% 1 4 5 What is the NPV for this project

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