Commence Investments would like to replace their existing computer system with a new, more modern system at a cost of R115 000. Additional installation costs for the new system are R10 500. The existing system was purchased three years ago for R50 000. The existing system can currently be sold for R40 000. Net working capital will increase by R13 000 with the replacement of their existing computer system. SARS allows for new and old assets to be written off over a four-year period. The beginning of project cash flows for the replacement project is:

(R101 000)

(R99 200)

(R85 500)

(R125 500)

(R112 500)