Q. A company is considering the purchase of a new distributed network computer system to help handle its warehousing inventories. The system costs $60,000 to purchase and install and $30,000 to operate each year. The system is estimated to be useful for four years. Management expects the new system to reduce the cost of inventory by $62,000 each year. The firms cost of capital is 10%. Compute the NPV of the investment assuming the tax rate is 0%.

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