note this is all one problem
The consulting company Harris White \&. Jackson ( HW J) is in that never-ending budgeting phase of the year. Realizing that th 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 efficlency gains and increased volume of sales -at least that's what the managers are expecting Information related to this investment is as follows. Determine if this investment makes sound finuncial sense for thus conipary by completing the followine: Calculate the NPV of this investment, (Round present value factor calculotions to 5 decimal ploces es. 1.25124 and final answer decimal places es. 5,125.36. Enter negotive amounts using either a negotive sign preceding the number e.g. -45 or parentheses e.5 145W. Based on this NPV amount, is the IRR higher or lower than 5% ? The IRR than 5% (b) Calculat the IRRIor thisimwestment. (Round answer to 2 decimal places, es. 15.25X: Determine the simple payback period using (1) before-tax cash flows and (2) after-tax cash flows. (Round answers to 2 dedimal ploces, es. 15.25.) Attempts: 0 of 2 used Determine the discounted payback period using after tax cash flows. (Round present value foctor calculations to 5 decimal places, es: 1.25124 and finol answer to 2 decimal places es. 5, 125.36) Discounted payback period Find the ARR (Round onswer to 1 decimal place, es. 15.2\%) ARR % (f) Calculate the profitability index for this investment: (Round answer to 2 decimal places, es. 15.25) Profitabilityindex The consulting company Harris White \&. Jackson ( HW J) is in that never-ending budgeting phase of the year. Realizing that th 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 efficlency gains and increased volume of sales -at least that's what the managers are expecting Information related to this investment is as follows. Determine if this investment makes sound finuncial sense for thus conipary by completing the followine: Calculate the NPV of this investment, (Round present value factor calculotions to 5 decimal ploces es. 1.25124 and final answer decimal places es. 5,125.36. Enter negotive amounts using either a negotive sign preceding the number e.g. -45 or parentheses e.5 145W. Based on this NPV amount, is the IRR higher or lower than 5% ? The IRR than 5% (b) Calculat the IRRIor thisimwestment. (Round answer to 2 decimal places, es. 15.25X: Determine the simple payback period using (1) before-tax cash flows and (2) after-tax cash flows. (Round answers to 2 dedimal ploces, es. 15.25.) Attempts: 0 of 2 used Determine the discounted payback period using after tax cash flows. (Round present value foctor calculations to 5 decimal places, es: 1.25124 and finol answer to 2 decimal places es. 5, 125.36) Discounted payback period Find the ARR (Round onswer to 1 decimal place, es. 15.2\%) ARR % (f) Calculate the profitability index for this investment: (Round answer to 2 decimal places, es. 15.25) Profitabilityindex
