Question: Table 2a: Net Present Value (Project 1 Total = Project 1 Year Cash outflows (initial investment and software expenses) -S125,000 S0 50 -$10,000 SO Benefit

Table 2a: Net Present Value (Project 1 Total = Project 1 Year Cash outflows (initial investment and software expenses) -S125,000 S0 50 -$10,000 SO Benefit inflow (better and more timely sales information) SO $85,000 $95,000 $105,000 $100,000 Net cash flow Discount Factor: Required rate of return (12% Expected inflation rate (2%) Net present value

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