Preston Industries’ current sales volume is $100 million a year. Preston is examining the advantages of electronic data interchange (EDI). The technology will allow Preston to electronically communicate with suppliers and customers and send and receive purchase orders, invoices, and cash. It will save Preston money by lowering costs in the purchasing, customer service, accounts payable, and accounting departments. Initial estimates are that savings will equal $100,000 a year. Investment in EDI technology will include $500,000 in depreciable expenses and $100,000 in nondepreciable expenses. Assets will be depreciated on a straight-line basis for four years. Implementation of EDI is expected to reduce Preston’s net working capital by $200,000. Because of changing technology, Preston’s president, Carol, wants to estimate the effect of switching to EDI on shareholder wealth over a four-year time horizon assuming that advances in technology will make the equipment worthless at the end of four years. At a 30 percent tax rate and 13 percent required rate of return, should Preston Industries switch to EDI?