Question: A B c D E Problem 4 Net Present Value and Payback 15 points Delta is considering the purchase of a computer-aided manufacturing system that

 A B c D E Problem 4 Net Present Value and

A B c D E Problem 4 Net Present Value and Payback 15 points Delta is considering the purchase of a computer-aided manufacturing system that requires an initial investment of $1,750,000 and is expected to provide average annual cash benefits and savings of $250,000 each year for the next 10 74 years. Their current cost of capital is 10%. Required: 75 Compute the net present value of the investment. Following are selected factors from tables for 10 years at 10\%: \begin{tabular}{|c|c|c|c|} \hline FV of S1 & FVOA & PV of S1 & PVOA \\ \hline 2.59374 & 15.93742 & 0.38554 & 6.14457 \\ \hline \end{tabular}

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