Upgrade Present System Aaron Jacobs rax Rate 21% ll Cost of Financing 10% 4 I H Year Cash Flows: 0 1 2 3 4 5 6 Initial Investment Salvage $15,326 $15,326 $15,326 $15,326 $15,326 $15,326 $14,793 $14,793 $14,793 $14,793 $14,793 $14,793 {educed Employees\" Increased Prots\" Computer Operating Costs' ($12,601) ($12,601) ($12,601) ($12,601) ($12,601) ($12,601) Depreciation\" $4,095 $6,552 $3,931 $2,359 $2,359 $1,179 \\let Cash Flows ($97,500) $21,613 $24,070 $21,449 $19,877 $19,877 $18,698 Cumulative Net Cash Flows 3resent Value Factor 3resent Value of Net Cash Flows ($97,500) ($75,887) ($51,817) ($30,367) ($10,490) $9,387 $28,085 1.0000 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 ($97,500) $19,648 $19,893 $16,115 $13,576 $12,342 $10,554