Question: please help. Thank you. Current Attempt in Progress The consulting company Harris White & Jackson ( HWJ ) is in that never-ending budgeting phase of

please help. Thank you.

please help. Thank you. Current Attempt in Progress The consulting company HarrisWhite \& Jackson ( HWJ ) is in that never-ending budgeting phaseof the year. Realizing that they couldn't defer a technology update any

Current Attempt in Progress The consulting company Harris White \& Jackson ( HWJ ) is in that never-ending budgeting phase of the year. Realizing that they couldn't defer a technology update any longer, the managers plan to replace all of the computers in the office. The old computers will be sold for market value. When the new computers reach the end of their useful lives, they will be sold as well. The cost of the combined new computers and annual software updates should be more than covered by efficiency gains and increased volume of sales -at least that's what the managers are expecting. Information related to this investment is as follows. Cost of new computers Salvage value of new computers at end of useful life Life of new computers (years) Market value of old computers today (equal to book value) Annual software update cost (necessary for all computers, old or new) Annual operating cash inflows from efficiency gains and increased sales due to new computers Minimum required rate of return Applicable tax rate $25,400 $2,400 5 $2,000 $3,200 $9,500 5% 24% Determine if this investment makes sound financial sense for this company by completing the following. Click here to view the factor table (a) Your answer is partially correct. Calculate the NPV of this investment. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places e.g. 5,125.36. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) NPV \$ Based on this NPV amount, is the IRR higher or lower than 5% ? The IRR than 5% Attempts: 1 of 2 used Your answer is incorrect. Calculate the IRR for this investment. (Round answer to 2 decimal places, e.g. 15.25\%.) IRR % Attempts: 1 of 2 used (c) Determine the simple payback period using (1) before-tax cash flows and (2) after-tax cash flows. (Round answers to 2 decimal places, e.g. 15.25.) Attempts: 0 of 2 used (d) Determine the discounted payback period using after-tax cash flows. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places e.g. 5,125.36.) Discounted payback period Attempts: 0 of 2 used (e) Find the ARR. (Round answer to 1 decimal place, e.g. 15.2\%.) ARR % Attempts: 0 of 2 used (f) Calculate the profitability index for this investment. (Round answer to 2 decimal places, e.g. 15.25.) Profitability index Attempts: 0 of 2 used

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