Savage Manufacturing is trying to decide whether to invest in a new CAD system for the design of its new front discharge concrete truck. The initial purchase price for the CAD system from ComputerGlow Graphics would be $12, 500 for the hardware, software and initial setup cost. An additional $2, 500 would be required to rewire the drafting office for the CAD system. This CAD system is expected to reduce design times as well as reducing duplication, reducing engineering changeovers, and improving overall product quality. The marketing and accounting departments have provided the following estimates for the after-tax ca flows for expected savings from the CAD system over its five-year life. With an established policy of only adopting investments that provide an 18% return, should the CAD system be purchased? _______ What is the NPV for this potential investment? ________ What is the IRR? ________ What would the NPV be if a salvage value of $650 was expected? _______ Should Savage purchase the CAD system now? (consider the question carefully) ________ What is the discount factor for the 5th year if a hurdle rate is 35 percent? ________