Lethbridge Company runs hardware stores in Alberta. Lethbridge's management estimates that if it invests $100,000 in a new computer system, it can save $25,000 in annual cash operating costs. The system has an expected useful life of nine years and no terminal disposal value. The required rate of return is 14%. Ignore income tax issues in your answers. Assume all cash flows occur at year-end except for initial investment amounts. (Click the icon to view the present value annuity factor table.) - X Required PV factor tables - X Required Present Value of Annuity of $1 Requirement 1. a. Calculate the NPV Period 10% 12% 14% 16% 18% 20% 22% 24% 26% 1. Calculate the following for the new computer system: A a. Net present value 1 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.806 0.794 b. Payback period 2 1.736 1.690 1.647 1.605 1.566 1.528 1.492 1.457 1.424 Net present value: c. Internal rate of return 3 2.487 2.402 2.322 2.246 2.174 2.106 2.042 1.981 1.923 d. Accrual accounting rate of return based on net initial Present value of annuity of equal investment (assume straight-line depreciation) A 3.170 3.037 2.914 2.798 2.690 2.589 2.494 2.404 2.320 2. What other factors should Lethbridge Company consider 5 3.791 3.605 3.433 3.274 3.127 2.991 2.864 2.745 2.635 in deciding whether to purchase the new computer Help me solve this Etext system? 6 4.355 4.111 3.889 3.685 3.498 3.326 3.167 3.020 2.885 7 4.868 4.564 4.288 4.039 3.812 3.605 3.416 3.242 3.083