Mercantile Inc. is considering investing in a complete small business computer system. The initial investment will be $70,000 in the hardware, which will be used for 10 years with a salvage value of $10,000, and investment in software of $40,000. In each of years 3, 5, and 7, $10,000 will be spent for additional software. Hardware has a CCA rate 45 percent and software is class 12 (100 percent). The computer system is expected to provide additional revenue of $30,000 per year for the next ten years, and to reduce expenses by $20,000 per year for the same period. The firm's cost of capital is 12 percent and its tax rate is 40 percent. Based on a net present value analysis, should this investment be accepted? Mercantile Inc. is considering investing in a complete small business computer system. The initial investment will be $70,000 in the hardware, which will be used for 10 years with a salvage value of $10,000, and investment in software of $40,000. In each of years 3, 5, and 7, $10,000 will be spent for additional software. Hardware has a CCA rate 45 percent and software is class 12 (100 percent). The computer system is expected to provide additional revenue of $30,000 per year for the next ten years, and to reduce expenses by $20,000 per year for the same period. The firm's cost of capital is 12 percent and its tax rate is 40 percent. Based on a net present value analysis, should this investment be accepted