Question: could you write it in a way i could understand Elegant Home Company operates a number of home improvement stores in a metropolitan area. Elegant

could you write it in a way i could understand
could you write it in a way i could understand Elegant Home
Company operates a number of home improvement stores in a metropolitan area.

Elegant Home Company operates a number of home improvement stores in a metropolitan area. Elegant Home's management estimates that if it invests $300,000 in a new computer system, if can save $69,000 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 imvestment amounts. Present Value of $1 table Present Valun of Annuty of $1 table Euture Value of Annuty of 51 table Read the requirements. a. Calculate the net present value for the new computer system. (Abbreviations used. FV= future value, PV= present value. Use factor afnounts rounded to three decimal plices. Round your answers to the nearest whole dollar Use a minus sign or parentheses for a negative het present value.) First, select the formula labels, then enter the amounts and calculate the net present value. Elegant Home Company operates a number of home improvement stores in a metropolitan area. mana0ement estimates that if it inyests $300,000 in a new computer system it can save $69,00 Requirements Calculate the following for the new computer system: a. Net present value; and b. Internal rate of retum (using the interpolation method). Elegant Home Company operates a number of home improvement stores in a metropolitan area. Elegant Home's management estimates that if it invests $300,000 in a new computer system, if can save $69,000 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 imvestment amounts. Present Value of $1 table Present Valun of Annuty of $1 table Euture Value of Annuty of 51 table Read the requirements. a. Calculate the net present value for the new computer system. (Abbreviations used. FV= future value, PV= present value. Use factor afnounts rounded to three decimal plices. Round your answers to the nearest whole dollar Use a minus sign or parentheses for a negative het present value.) First, select the formula labels, then enter the amounts and calculate the net present value. Elegant Home Company operates a number of home improvement stores in a metropolitan area. mana0ement estimates that if it inyests $300,000 in a new computer system it can save $69,00 Requirements Calculate the following for the new computer system: a. Net present value; and b. Internal rate of retum (using the interpolation method)

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