Please see attachment
I only need assistance with Part 4b.
I don't know how to calculate the NPV in this circumstance.© BrainMass Inc. brainmass.com October 9, 2019, 5:33 pm ad1c9bdddf
b) The company you have selected is considering investing money in a new specialised financial information system. The purchase price of the system would be £540,000 and would result in administrative cost savings over a four year period. The purchase price would be funded entirely by a new bank loan with an associated cost of capital of 10%. ...
As requested, the solution presents a fully detailed explanation of the problem complete with the calculation of the answer.