Lethbridge Company runs hardware stores in Alberta. Lethbridge's management estimales that if it invests $200.000 in a new computer system, it can save 563,000 in annual cash operating costs. The system has an expected useful life of five years and no terminal disposal value. The required rale ol relurn is 12%. Ignore income tax issues in your answers. Assure all cash flows occur at year-end except for initial investment amounts. (Click the loon to view the table for the present value annuity factors) Required X Requirement 1a. Calculate the NPV (net present value of the new computer system. (Use a minus sign or parentheses for a negative net present value. Round present values to the nearest whole dollar.) Annuity PV factor at Total Present i=12%, n=5 Net Cash Inflow Value Net present value: Present value of annuity of equal - X annual net cash inflows 3.605 $ 83,000 per year $ 227.115 Required Net initial investment (200,000) 27.115 Net present value 1. Calculate the following for the new computer system: a. Nel present value Requirement 1b. Calculate the payback period for the new computer system, b. Payback period The payback period is 3.17 years. (Round your answer to two decimal places.) c. Intemal rate of retum d Accrual accounting rate of retum based on net initial Requirement 1c. Calculate the internal rate of return for the new computer system. investment (assume straight-line depreciation) 2. What other factors should Lethbridge Company consider in The IRR (internal rate of return) is 1%. (Hold al decimals in interim calculations. Enter the rate as a percentage rounded to two decirnal places, X.XX%.) deciding whether to purchase the new computer system? Print Done Lethbridge Company runs hardware stores in Alberta. Lethbridge's management estimales that if it invests $200.000 in a new computer system, it can save 563,000 in annual cash operating costs. The system has an expected useful life of five years and no terminal disposal value. The required rale ol relurn is 12%. Ignore income tax issues in your answers. Assure all cash flows occur at year-end except for initial investment amounts. (Click the loon to view the table for the present value annuity factors) Required X Requirement 1a. Calculate the NPV (net present value of the new computer system. (Use a minus sign or parentheses for a negative net present value. Round present values to the nearest whole dollar.) Annuity PV factor at Total Present i=12%, n=5 Net Cash Inflow Value Net present value: Present value of annuity of equal - X annual net cash inflows 3.605 $ 83,000 per year $ 227.115 Required Net initial investment (200,000) 27.115 Net present value 1. Calculate the following for the new computer system: a. Nel present value Requirement 1b. Calculate the payback period for the new computer system, b. Payback period The payback period is 3.17 years. (Round your answer to two decimal places.) c. Intemal rate of retum d Accrual accounting rate of retum based on net initial Requirement 1c. Calculate the internal rate of return for the new computer system. investment (assume straight-line depreciation) 2. What other factors should Lethbridge Company consider in The IRR (internal rate of return) is 1%. (Hold al decimals in interim calculations. Enter the rate as a percentage rounded to two decirnal places, X.XX%.) deciding whether to purchase the new computer system? Print Done