CAPITAL BUDUL ent stores in a metropoli- if it invests $250,000 in a new serating costs. The system has Home Value Company operates a number of home improvement stores in a 21-1 tan area. Home Value's management estimates that if it invests $250.00 computer system, it can save $65,000 in annual cash operating costs. The an expected useful life of eight years and no terminal disposal value. The of return is 8%. Ignore income tax issues and assume all cash flows occur at except for initial investment amounts. Calculate the following for the new computer system: a. net present value; and b. internal rate of return (using the interpolation method). TER 21 CAPITAL BUDGETING AND Company With the same information as provided in Try To ITI 21-2 calculate the following for the new computer system: a. payback period; and b. discounted payback period