Question: please provide the correct answer Choose Exercise: (1 only) 1 Merlot City is planning to purchase a large computer. The computer system requires a payment

 please provide the correct answer Choose Exercise: (1 only) 1 Merlot

please provide the correct answer

Choose Exercise: (1 only) 1 Merlot City is planning to purchase a large computer. The computer system requires a payment now for hardware in the amount of $100,000 and software in the amount of $40,000. The new computer would result in savings of $32,000 per year. A system upgrade would be necessary in year 3 in the amount of $22,000. At the end of its 5-year life, the computer could be sold for salvage value of $15,000. Additionally, spare computer time could be sold for $10,000 in years 1-5. Compute the NPV using a cost of capital of 8.00%. Use positive numbers for cash inflows, use negative numbers for cash outflows. Years 0 1 2 3 Purchase of Computer Hardware Purchase of Computer Software Total Project Cost in Time Period 0 Savings System Upgrade Revenue from Time Sharing Salvage Value Use Dropdown---> Net Annual Cash Flows Discount Factors at 8% Discounted Cash Flows Net Present Value 4 5 012345 0 00000 TO 00000 00000 00000 00000 0 0 OO ooooo 0

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