The Rauzi Company is looking to replace an existing computer system with a new, more efficient system. They feel the new will increase cash flow. The new system will cost $435,000 today and have a 4 year production life. It will be depreciated as 5-year MACRS property with an estimated salvage value of $175,000 at the end of its production life. The project will also set aside $15,000 for working capital. The old computer is currently two years old and had an estimated production life of six years. It originally cost $305,000 and was being depreciated as 5-year MACRS property. It could be sold for $150,000 today and we estimated that if kept, we would sell it for $25,000 at the end of its production life. The new is estimated to produce revenue of $250,000 per year and have expenses of $75,000 per year (excluding depreciation and taxes) for its production life. The old was expected to produce revenue of $135,000 per year and have expenses of $85,000 per year (excluding depreciation and taxes) for its production life. 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. The Rauzi Company is looking to replace an existing computer system with a new, more efficient system. They feel the new will increase cash flow. The new system will cost $435,000 today and have a 4 year production life. It will be depreciated as 5-year MACRS property with an estimated salvage value of $175,000 at the end of its production life. The project will also set aside $15,000 for working capital. The old computer is currently two years old and had an estimated production life of six years. It originally cost $305,000 and was being depreciated as 5-year MACRS property. It could be sold for $150,000 today and we estimated that if kept, we would sell it for $25,000 at the end of its production life. The new is estimated to produce revenue of $250,000 per year and have expenses of $75,000 per year (excluding depreciation and taxes) for its production life. The old was expected to produce revenue of $135,000 per year and have expenses of $85,000 per year (excluding depreciation and taxes) for its production life. 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