Reference no: EM132556681

Aurora Services is considering a proposal to replace their current computer system at a cost of $4,450. The nominal discount rate is 8%. The after tax cash flow in nominal dollars is as follows:

Year 0: ($4,450)

Year 1: $2,500

Year 2: $2,800

Question 1: Using the appropriate table from Appendix A, the net present value of the cash flows using nominal dollars and nominal discount rates is ______. (Round your final answer to the nearest whole dollar.)

$5,300

$265

($265)

($2,135)