Evaluating CAD System Investment, Your company would like to invest in a new computer-aided design (CAD) system that requires purchasing hardware, software, and networking technology, as well as expenditures for installation, training, and support. You believe the new system will reduce the amount of labor required to generate designs and design specifications, thereby increasing your firm’s annual cash flow. The system is expected to be completed at the end of year 0 (2020). From 2021 to 2025, the new system is expected to reduce labor costs by $250,000 per year and to increase gross revenue $150,000 per year. Using the data provided in these tables, design a worksheet (Microsoft Excel is preferred) that calculates the costs and benefits of the investment over a five-year period and analyzes the investment using each of the four capital budgeting models presented in Chapter 14 and in the Learning Track included below: • Payback period – indicate yearly and cumulative figures for years 2021-2025 • Accounting Rate of Return on Investment (ROI). Assume depreciation to be the total initial cost of the investment in Year 0. • Net Present Value, assuming an interest rate of 5% • Internal Rate of Return Once you complete the worksheet and your analysis, type an executive summary of your findings and recommendations, which should answer the question, “Is this investment worthwhile? Why or why not?” Your assignment submission should include two files. One should be your Excel worksheet(s) file, and the other should be your executive summary and recommendations in a Word document

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December 31st, 2022