eEgg is considering the purchase of a new distributed network computer system to heip handle its warehouse inventories. The systern costs $60,000 to purchase and install and $30,000 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 $62,000 per year. The firm's cost of capital (discount rate) is 10%. 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 ARpendix. C. TABLE 1 and Apoendix C. TABLE2) 1a. The firm is not yet profitable and therefore pays no income taxes. 16. The firm is in the 30% income tax bracket and uses straight-line (SLN) depreciation with no salvage value. Assume MACRS rules do not opply, ic. The firm is in the 30% income tax bracket and uses double-declining-balance (DDB) depreciation with no salvage value. Given a four-year life, the DDB depreciation rate is 50%0.e,225% ). In year four, record depreciation expense as the net book value (NBV) of the asset at the start of the year. 2. What is the internal rate of retum (IRR) of the proposed investment for situations in requirement 1, parts (a) through (c)? Use the IRR bulit-in function in Excel to compute the IRR. Complete this question by entering your answers in the tabs below. The firm is not yet profitable and therefore pays no income taxes. (Hound your answer to nearest whole dolisr amount) Complete this question by entering your answers in the tabs below. The firm is in the 30% income tax bracket and uses straight-line. (SLN) depreciation with no salvage value. Assume MACRS rules do not apply. (Round your answer to nearest whole dollar amount.) The firm is in the 30% income tax bracket and uses double-declining-balance (DDB) depreciation with no salvage value. Given a four-year life, the DDB depreciation rate is 50% (i.e., 225% ). In year four, record depreciation expense as the net book value (NBV) of the asset at the start of the year. (Round discount factor to 3 decimal places and other answers to the nearest whole dollar amount. Negative amounts should be indicated by a minus sign.) What is the internal rate of return (IRR) of the proposed investment for situations in requirement 1, parts (a) through (c)? Jse the IRR builit-in function in Excel to compute the IRR. (Round "Estimated IRR" to 1 decimal place.) TABLE I Present Value of \$1 TABLE 2 Present Value of Annuity of \$1