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Please show all of the calculation processes. Period 2 4 Present Value of Annuity of $1 10% 12% 14% 16% 18% 20% 22% 24% 26%

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Please show all of the calculation processes.

Period 2 4 Present Value of Annuity of $1 10% 12% 14% 16% 18% 20% 22% 24% 26% 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.806 0.794 1.736 1.690 1.647 1.605 1.566 1.528 1.492 1.457 1.424 2.487 2.402 2.322 2.246 2.174 2.106 2.042 1.981 1.923 3.170 3.037 2.914 2.798 2.690 2.589 2.494 2.404 2.320 3.605 3.433 3.274 3.127 2.991 2.864 2.745 2.635 4.355 4.111 3.8893.685 3.498 3.326 3.167 3.020 2.885 4.868 4.564 4.288 4.039 3.812 3.605 3.416 3.242 3.083 5.335 4.968 4.639 4.344 4.0783.837 3.619 3.421 3.241 5.759 5.328 4.946 4.607 4.303 4.031 3.786 3.566 3.366 6.145 5.650 5.216 4.833 4.494 4.192 3.923 3.682 3.465 3.791 1. Calculate the following for the new computer system: a. Net present value b. Payback period c. Internal rate of return d. Accrual accounting rate of return based on net initial investment (assume straight-line depreciation) 2. What other factors should Guelph Company consider in deciding whether to purchase the new computer system? Guelph Company runs hardware stores in Alberta. Guelph's management estimates that if it invests $140,000 in a new computer system, it can save $33,000 in annual cash operating costs. The system has an expected useful life of eight years and no terminal disposal value. The required rate of return is 10%. 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.) Required Requirement 1. a. Calculate the NPV (net present value) of the new computer system. (Use a minus sign or parentheses for a negative net present value.) Net Cash Annuity PV factor at i=10%, n=8 Total Present Value Inflow Net present value: Present value of annuity of equal annual net cash inflows 5.335' x $ 33,000 per year $ 176,055' (140,000) 36,055 Net initial investment $ Net present value b. Calculate the payback period for the new computer system The payback period is 4.24 years. (Round your answer to two decimal places.) c. Calculate the internal rate of return for the new computer system. The IRR (internal rate of return) is 16.77 %. (Hold all decimals in interim calculations. Round the rate to two decimal places, X.XX%.) d. Calculate the accrual accounting rate of return based on net initial investment (assume straight-line depreciation). The AARR (accrual accounting rate of return) is 11.1 %. (Round interim calculations to the nearest whole dollar. Round your final answer to the nearest tenth of a percent, X.X%.) Requirement 2. What other factors should Guelph consider in deciding whether to purchase the new computer system? O A. Qualitative factors, such as the benefits to its customers of the new computer system and the employee-morale advantages of having up-to-date equipment B. Financing factors, such as the availability of capital to purchase the new computer system O C. Ensure that all costs of training and startup costs are included in the estimates D. All of the above O E. None of the above. Using all four of the capital budgeting methodologies from requirement 1 will give management sufficient information to determine whether or not an investment in the new computer system meets the organization goals of the company

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