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The following information applies to the questons dsplayed below The state's secretary of education is considering the purchase of a new computer for $76,000. A

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The following information applies to the questons dsplayed below The state's secretary of education is considering the purchase of a new computer for $76,000. A cost study Indicates that the new computer should save the Department of Education $38,000, measured in real doller during each of the next eight years. The real interest rate Is 20 percent and the inflation rate is 10 percent. As a governmental agency, the Department of Education pays no taxes. Use Appendix A for your reference. (Use appropriate factoris) from the tables provided) 18 1000 points value: Re pysepdre a schedule of cash Rows measured in real dlars Incuhe 1. Prepare a schedule of cash flows measured in real dollars, Include the initial acquisition and the cost quition and the cost savings for each of the next eight years. (Round "Discount Factor" to 3 decimal places. Negative amounts should be indicated by a minus sign.) Discount Year in RealFactor (real Present Value interest Dollarsrate 20) 1000 0.833 0 694 0 579 0 482 0.402 0.335 0.279 0 233 (76,000) 31,654 26,372 22,002 18,316 15,276 12.730 10.602 8,854 S (76,000) 38,000 38,000 38 000 38,000 38,000 38,000 38,000 38,000

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