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Done < DA A 8 ezto.mheducation.com @ [:T_'] @) Week 8 Quiz (Ch 16 - Part 2) @ Help Save & Exit Submit computing technology to reduce current operating costs. The new computing technology will have a five-year life with no salvage value at the end of five years. Advanced Digital Design’s cost of capital is 12%. Relevant cash flows and present value factors for 5 years @ 12% are as follows: q Advanced Digital Design is analyzing a capital investment project for using new Investment in computer technology = $500,000. Annual net cash savings from new computer technology = $135,000. Salvage value of new computer technology = $0. Present value of $1=0.5674 Present value of an annuity of $1=3.6048 The present value ratio of the investment in new computing technology is: Multiple Choice @ O )