The management at Kim is evaluating the possibility of replacing their large mainframe computer with a modern network system that requires much less office space. The network would cost $500,000 (including installation costs) and would generate $125,000 per year in operating cash flows (accounting for taxes and depreciation) over the next five years due to efficiency gains. The mainframe has a remaining book value of $50,000 and would be immediately donated to a charity for the tax benefit. Kimcos discount rate is 10% and its tax rate is 40%. Based on NPV and IRR, should management install the network system?

PLEASE SHOW ME HOW TO DO IT STEP BY STEP AND NO EXCEL