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Elegant Home Company operates a number of home improvement stores in a metropolitan area. Elegant Home's management estimates that if it invests $300,000 in a

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Elegant Home Company operates a number of home improvement stores in a metropolitan area. Elegant Home's management estimates that if it invests $300,000 in a new computer system, it can save $69,000 in annual cash operating costs. The system has an expected useful life of 8 years and no terminal disposal value. The required rate of return is 10%. Ignore income tax issues and assume all cash flows occur at year-end except for initial investment amounts. Read the requirements, a. Calculate the net present value for the new computer system. (Abbreviations used: FV= future value, PV = present value. Use factor amounts rounded to three decimal places. Round your answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) First, select the formula labels, then enter the amounts and calculate the net present value. \begin{tabular}{|c|c|c|c|} \hlinex & 1.- & = & Net present value \\ \hlinex & )= & = & \\ \hline \end{tabular} Requirements Caiculate the following for the new computer system: a. Net present value; and b. Internal rate of return (using the interpolation method). Elegant Home Company operates a number of home improvement stores in a metropolitan area. Elegant Home's management estimates that if it invests $300,000 in a new computer system, it can save $69,000 in annual cash operating costs. The system has an expected useful life of 8 years and no terminal disposal value. The required rate of return is 10%. Ignore income tax issues and assume all cash flows occur at year-end except for initial investment amounts. Read the requirements, a. Calculate the net present value for the new computer system. (Abbreviations used: FV= future value, PV = present value. Use factor amounts rounded to three decimal places. Round your answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) First, select the formula labels, then enter the amounts and calculate the net present value. \begin{tabular}{|c|c|c|c|} \hlinex & 1.- & = & Net present value \\ \hlinex & )= & = & \\ \hline \end{tabular} Requirements Caiculate the following for the new computer system: a. Net present value; and b. Internal rate of return (using the interpolation method)

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