Rauzi Company is looking to replace an existing computer system with a new, more efticient system. They feel the new will increase cash flow. The The new system will cost $870,000 today and have a 4 year production life. It will be depreciated as 5-year MACRS property with an estimated salvage value of $350,000 at the end of its production life. The project will also set aside $30,000 for working capital. The old computer is years, It originally cost $610,000 and was being depreciated as 5-year MACRS property. t could be sold for $300,000 today and we estimated that if kept, we would sell it for $50,000 at the end of its production life currently two years old and had an estimated production life of six The new is estimated to produce cash revenue of $500,000 per year and have cash expenses of $150,000 per year (excluding depreciation and taxes) for its production lite. The old was expected to produce cash revenue of $270,000 per year expenses of S170,000 per year (excluding depreciation and taxes) for its production life. and have cash Rauzi has a 35% tax rate and requires a 20% return on this investment. Use NPV and determine if they should invest. Also determine the profitability index and the internal rate of return. SHOW ALL WORK