Question 3 (10 marks) Marks A system for a business will cost $25,000 to develop in the initial year (Year 0) and then cost $5,000 per year to maintain over the remaining years of a 5 year period (Year 1,2.3&4). During the initial year the system will produce no benefits (Year 0), however after the system is implemented it is expected to show benefits for the business of $15.000 per year for each of the remaining years (Year 1,2,3&4). Assuming a 6% discount rate, and using the following table, determine the Net Present Value (NPV) for this business. 6% Periods 1 2 0.943 0.890 0.840 0.792 3 4 5 0.747 Answer this question by completing the table provided below. Values must be entered for each of the non highlighted cells within the table. 711 Year 0 Year 1 Year 2 Year 3 Year 4 Total Benefits PV Factor (6%) PV of Benefits Costs PV Factor (6%) PV of Costs Net Present Value: Question 3 (10 marks) Marks A system for a business will cost $25,000 to develop in the initial year (Year 0) and then cost $5,000 per year to maintain over the remaining years of a 5 year period (Year 1,2.3&4). During the initial year the system will produce no benefits (Year 0), however after the system is implemented it is expected to show benefits for the business of $15.000 per year for each of the remaining years (Year 1,2,3&4). Assuming a 6% discount rate, and using the following table, determine the Net Present Value (NPV) for this business. 6% Periods 1 2 0.943 0.890 0.840 0.792 3 4 5 0.747 Answer this question by completing the table provided below. Values must be entered for each of the non highlighted cells within the table. 711 Year 0 Year 1 Year 2 Year 3 Year 4 Total Benefits PV Factor (6%) PV of Benefits Costs PV Factor (6%) PV of Costs Net Present Value