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Please answer a-f The consultirg company Smith King & Young (S KY) is in that never ending budgeting phase of the year Realizirg that they
Please answer a-f
The consultirg company Smith King \& Young (S KY) is in that never ending budgeting phase of the year Realizirg that they couldr't defer a technology update any longer, the managers plan to replace all of the computers in the olfce. The old computers will be sold for market value. When the new computers reach the end of their useful lives, they will be sod as well. The cost of the combined new cornputers and annual sof tware updates should be more than covered by effciency gains and increased volume of sales -at least that's what the managers are expecting Information related to this imestment is as followsi Determine if this investment makes sound francial sense for this compary by cornpleting the following Calculate the NPV of this investment, (Round present value foctor cakulations to 5 decimal ploces es 1.25124 and final answer to 2 decimal ploces es. 5,125.36. Enter negative amounts using either a negative sign preceding the number es. 45 or parentheses 59 . (45) NPV: $ Based on this NPV amount, is the iRR highier or lower than 6 \%? The IER than 6% Last saved 2 hours ago. Attempts: of 2 used Saved work will be auto submitted on the due date. Auto submission can take up to 10 minutes. (b) Calculate the IRR lor this irvestment. (Round answer to 2 decimel pleces, es. 15.25\%) Determine the simple payback period using (1) before-tax cash flows and (2) after-tax cash flows. (Round answers to 2 decinol places, es. 15.25. Attempts: 0 of 2 used (d) Determine the discounted payback period using after-tax cash flows. (Round present volue factor cakabations to 5 decimol ploces, eg. 1.25124 and final answer to 2 decimal places es, 5.125 .36 . Discounted payback period (e) Find the ARR. (Round answer to 1 decimal ploce, es. 152 ) ARR Attemptsi o of 2 used Calculate the profitability index for this investment. (Round answer to 2 decimal places, es. 15.25.) Profitability index Step by Step Solution
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