Waterloo Company runs hardware stores in Alberta Waterloo's management estimates that if it invests $120,000 in a new computer system, it can save $25,000 in annual cash operating costs The system has an expected useful life of eight years and no terminal disposal value. The required rate of retum is 12% Ignore income tax issues in your answers Assume all cash flows occur at year-end except for initial investment amounts (Click the icon to view the present value annuity factor table.) 0 PV factor tables - X Present Value of Annuity of $1 Period 10% 12% 14% 16% 18% 20% 22% 24% 26% 0 909 0.893 0.877 0.862 0.847 0.833 0820 0.806 0.794 1736 1690 1647 1605 1 566 1.528 1 492 1.457 1424 3 2.487 2.402 2.322 2.245 2.174 2.105 2.042 1981 1923 3.170 3.037 2.914 2.798 2.690 2.509 2.494 2.404 2.320 3.791 3.605 3.433 3.274 3.127 2.991 2.884 2.745 2.635 4.355 4.111 3.889 3.635 3.498 3.326 3.167 3.020 2.885 4.680 4.584 4.288 4.039 3.812 3.605 3.418 3.242 3.003 5.335 4.968 4.639 4.344 4.078 3.837 3.619 3.421 3.241 5.759 5.328 1.946 4.807 4.303 4.031 3.786 3.566 3.366 106.145 5.650 5216 4.833 4.494 4.192 3.923 3.682 3.465 Requirement 1. a. Calculate the NPV (net present value) of the new computer system. (Use a minus sign or parentheses for a negative net present value.) Annuity PV factor at i=12%, n=8 Net Cash Inflow Total Present Value Net present value Present value of annuity of equal annual net cash inflows * per year Net initial investment Net present value b. Calculate the payback period for the new computer system. The payback period is years. (Round your answer to two decimal places.) c. Calculate the internal rate of return for the new computer system. The IRR (internal rate of return) is % (Hold all decimals in interim calculations. Round the rate to two decimal places, X.XX%.) d. Calculate the accrual accounting rate of return based on net initial investment (assume straight-line depreciation). The AARR (accrual accounting rate of return) is % (Round interim calculations to the nearest whole dollar. Round your final answer to the nearest tenth of a percent, X.X%.)