Problem
You are the fund raising director for Hemmer's Helpers (HH.org), a non-profit organization that helps source and distribute food for the poor. You are tasked with evaluating the purchase of new computers that will be used for charity fundraising. The computers will cost $750,000 to buy and you expect to incur operating expenses of $35,000 per year. The computers are depreciated on a straight line basis for 5 years. New donations to HH.org attributable to the new investment are expected to be $235,000 per year starting in one year. At the end of year 5, you expect to sell the computers for $100,000. Since HH.org is a non-profit, their tax rate is 0% and their discount rate is 4%. Should HH.org buy the computers?