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Wayfare is contemplating investing in a new computer system. The system will cost $ 3 7 5 , 0 0 0 with a salvage value

Wayfare is contemplating investing in a new computer system. The system will cost $375,000 with a salvage value of $15,000 at the end of its useful life of 8 years. The equipment is expected to generate additional annual cash inflows with the following probabilities for the next 8 years:
ProbabilityCash Flow0.15$45,0000.2564,0000.3571,0000.2589,000
A) What is the expected cash flow?
B) If Wayfares' cost of capital is 7%, what is the expected net present value?
C) Do you recommend Wayfare invest in the new computer system?

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