please help with exercise 1

Exercise 1 It has been several years since your office last upgraded its office networking software. Two competing systems have been proposed. Both have an expected useful life of 3 years, at which point it will be time for another upgrade. One proposal is for an expensive, cutting-edge system, which will cost $800,000 and increase firm cash flows by $350,000 a year through increased productivity. The other proposal is for a cheaper, somewhat slower system. This system would cost only $700,000 but would increase cash flows by only 300,000 a year. If the cost of capital is 7%, which is the better option? 8- Net Present Value Exercise 1(continued) Cash Flows (thousands of dollars) C1 C2 System C3 Faster -800 +350 +350 +350 Slower -700 +300 +300 +300