Question $4$:

a$)$ Suppose that we are considering the installation of a small computer to accomplish internal tasks of payroll computation, invoicing, and other routine accounting. The purchase price is quoted as $$300,000$ and the salvage value five years later is expected to be $$100,000.$ The operating costs are expected to be $$100,000$ per year, mainly for personnel to program, operate, and maintain the computer. What is the present value of the costs to own and operate the computer over its five$-$year economic life? The value of money in the organization is $15\%.$

$\backslash$table$[[$Year$,\backslash$table$[[$Purchase price$],[($A$)]],\backslash$table$[[$Operating cost$],[($B$)]],\backslash$table$[[$Salvage value$],[($C$)]],\backslash$table$[[\backslash$table$[[$Net$],[$Infolow$/$Outflow$],[($D$=$A$+$B$+$C$)]]]],\backslash$table$[[$PV factor @$],[15\%($E$)]],,\backslash$table$[[$ent Value$],[=$E$^(+-)$D $)]]],[0,$$ $(300,000),,,$$$(300,000),1\mathrm{.}00,$$$,(300,000)],[1,,$$ $(100,000),,$$$(100,000),0\mathrm{.}87,$$$,(86,957)],[2,,$$ $(100,000),,$$$(100,000),0\mathrm{.}76,$$$,(75,614)],[3,,$$ $(100,000),,$$ $(100,000),0\mathrm{.}66,$$$,(65,752)],[4,,$$ $(100,000),,$$$(100,000),0\mathrm{.}57,$$$,(57,175)],[5,,$$ $(100,000),$$$100,000,$$$,0\mathrm{.}50,$$$,-],[$Present value of cost to own and operate the computer over five years,$$,(585,498)]]$