e Egg is considering the purchase of a new distributed network computer system to help handle its warehouse inventories. The system costs $40,000 to purchase and install and $29,000 to operate each year. The system is estimated to be useful for 4 years Management expects the new system to reduce the cost of managing inventories by $50,000 per year. The firm's cost of capital (discount rate) is 9% Required: 1 What is the net present value (NPV) of the proposed investment under each of the following independent situations? Use the appropriate present value factors from Appendix . TABLE 1 and Appendix. TABLE 21 1a. The firm is not yet profitable and therefore pays no income taxes 15. The firm is in the 2796 income tax bracket and uses straight-line (SLNI depreciation with no salvage value. Assume MACRS rule do not apply. 1. The firm is in the 27% Income tax bracket and uses double-declining-balance (DB) depreciation with no salvage value. Givena fouear fe the DDB depreciation rate is 50% fle, 2 2596)In year four record depreciation expense as the netbook van the asset at the start of the year. 2. What is the Internal rate of return (IRR) of the proposed investment for situations in requirement parts (a) through ( Use the IRR built-in function in Excel to compute the IRR. ces Complete this question by entering your answers in the tabs below Res 12 Reg 18 Res 10 Res 2 The firm is not yet profitable and therefore pays no income taxes. (Found your answer to nearest whole dollar amount.) Net est