b. What is the NPV if the pretax cost savings are $383,600 per year? NPV $163,420.92 $158,518.29 $155,249.87 $155,249.87 $168,323.55 c. At what level of pretax cost savings would you be indifferent between accepting the project and not accepting it? Cost savings $306,899.59 $274,979.69 $270,720.57 $322,244.57 $291,554.61 Your firm is contemplating the purchase of a new $869,500 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $84,600 at the end of that time. You will be able to reduce working capital by $117,500 (this is a one-time reduction). The tax rate is 24 percent and your required return on the project is 23 percent and your pretax cost savings are $276,200 per year. a. What is the NPV of this project? NPV $-65,409.76 $-63,447.5 $-62,139.27 $-68,680.25 $-67,372.05 b. What is the NPV if the pretax cost savings are $383,600 per year? NPV $163,420.92 $158,518.29 $155,249.87 $155,249.87 $168,323.55