Question 9 Network Computers is deciding whether to invest in prevention costs for its servers. Data regarding the decision between investing or not is as follows: Invest in Do Not Invest Prevention $ 175,000 Cost of Equipment $ 25,000 Working capital investment required Annual Activity S 294,000 $ 175,000 Annual Sales (assume all cash) Annual Cash Expenses 14,000 $ 35,000 Repair Costs Depreciation $ 21,875 Maintenance $ 30,000 Supplies 55,000 Retooling costs of equipment at Year 5 $ 115,000 Salvage value of equipment 3,500 Life of project 8 8 The working capital will be released for investment elsewhere at the end of the 8 years. Network Computers uses a 8% discount rate. (Lgnore income taxes) Show all computations using the net present value format. Prepare separate computations for each project. a) Invest in Prevention b) Do Not Invest