Classic Home Company operates a number of home improvement stores in a metropolitan area. Classic Home's management estimates that if it invests $260,000 in a new computer system, it can save $64,000 in annual cash operating costs. has an expected useful life of 8 years and no terminal disposal value. The required rate of return is 12%. Ignore income tax issues and assume all cash flows occur at year-end except for initial investment amounts. Reference Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements.