(Answered) Question - a modification to an erp project is expected to

Accounting

Question - A modification to an ERP project is expected to cost $50,000. The benefits are shown for each of the first four years.

Year	1	2	3	4
Cash Flow	(5,000)	50,000	50,000	(25,000)

1. What is the NPV of the project if the required return is 14%?

2. What is the NPV of the project if the required return is 12% and the inflation is currently expected to be steady at 5% for the life of the project?

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