Beautiful Home Company operates a number of home improvement stores in a metropolitan area.

Beautiful Home's

management estimates that if it invests

$240,000

in a new computer system, it can save

$63,000

in annual cash operating costs. The system has an expected useful life of

8

years and no terminal disposal value. The required rate of return is

10%.

Ignore income tax issues and assume all cash flows occur at year-end except for initial investment amounts.

Beautid Home Company operates a number of home improvement stores in a metropolitana Beach Homestamente nates that if vest 349 00 banow.computers 00 saat operating costs. The system has an expected of years and metal sposal van The required rate of 10 income tax cathwater year and for investment amount Presentato 513 Value Annulabit Etusible elut Read the moviment a. Calcule the payback period for the new computer system Abbreviations used Producciones Requirements - X 7. a Calculate the following for the new computer system, a. Payback period, and b Discounted payback period. al places. Round a Print Done S positive numbers ind ke imate discounted Net initial investment a. Calculate the payback period for the new computer system (Abhirvitions used IV we voor PV = pensant van factor amounts rounded to the decimal placut Hound your answers to the Use a mis on or otheca gatvesen van Fust, select the formula labelt then enter the amounts and calculate the payback period in your Payhack period b. Calculate the discounted payback period for them Begin calculating the discounted payback period by completing the table to calculate the netheinen recovered at the end of the year wall mounts as putes Round the other decimal XXXX Pormous with ance makes the correc) Cas DON Dond Curvedis Nations Year Theco change Cash recovered and of year 1.000 1 Finally, using the completed table, calculate the discounted payback period. (Round your answer to two decimal places) The discounted payback period is years a. Calculate the payback period for the new computer system (Abbreviations used FV = future value: PV - present value. Use factor amounts roun Flest, select the formula labels, then enter the amounts and calculate the payback period in years Payback period b. Calculate the discounted payback period for the computer system Begin calculating the discounted payback period by completing the table to calculate the net initial investment unrecovered at the end of the year (En Cash Discount Discounted Cumulative discounted Net initial investment Year Savings factor cash savings cash savings unrecovered at end of year 0 1.000 240000 1 63000 2 3 4 5 6 7 8 Finally, using the completed table, calculate the discounted payback period (Round your answer to two decimal places) The discounted payback period is years