PLEASE SHOW ALL YOUR CALCULATIONS AND WORK; ALSO PLEASE GIVE AN EXPLANATION!!

1. A new inventory management system for ABC company could be developed at a cost of $280,000. The estimated net operating costs and estimated new benefits over six years of operation would be: Year Estimated Net Operating costs Estimated New Benefits ($280,000) ($6,000) $40,000 ($9,800) $80,000 ($11,000) $82,000 ($14,000) $115,000 ($15,000) $120,000 $140,000 ($25,000) a. Assume that ABC Company now believes that the project is more risky than originally thought. As a result, the company's estimate of the investment's discount rate is now 18% (instead of 12%). Does this change your answer in Part (e)? Why or why not? (4 points)