Hi, is this to long of a question, with multiple small steps? Thank you in advance!

The consulting company Johnson Smith & King (JSK) is in that never-ending budgeting phase of the year. Realizing that they couldn't defer a technology update any longer, the managers plan to replace all of the computers in the office. The old computers will be sold for market value. When the new computers reach the end of their useful lives, they will be sold as well. The cost of the combined new computers and annual software updates should be more than covered by efficiency gains and increased volume of sales-at least that's what the managers are expecting. Information related to this investment is as follows. Cost of new computers Salvage value of new computers at end of useful life Life of new computers (years) Market value of old computers today (equal to book value) $25,500 $2,500 5 $2,200 Annual software update cost (necessary for all computers, old or new) $3,000 Annual operating cash inflows from efficiency gains and increased sales due to new computers $9,900 Minimum required rate of return 5% Applicable tax rate 22% Determine if this investment makes sound financial sense for this company by completing the following. Click here to view the factor table