Capital budget methods, no income taxes Riverbend Company runs hardware stores in a tristate area. Riverbend’s management estimates that if it invests $250,000 in a new computer system, it can save $67,000 in annual cash operating costs. The system has an expected useful life of eight years and no terminal disposal value. The required rate of return is 8%. Ignore income tax issues in your answers. Assume all cash flows occur at year-end except for initial investment amounts.Required1. Calculate the following for the new computer system:a. Net present valueb. Payback periodc. Discounted payback periodd. Internal rate of return (using the interpolation method)e. Accrual accounting rate of return based on the net initial investment (assume straight-line depreciation)2. What other factors should Riverbend consider in deciding whether to purchase the new computer system?