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DISCUSS QUESTION #2 (Refer to Handouts for Chapter 12 posted in Content) The Killington Company is considering the purchase of a $200,000 computer-based inventory management
DISCUSS QUESTION #2 (Refer to Handouts for Chapter 12 posted in Content) The Killington Company is considering the purchase of a $200,000 computer-based inventory management system. It will be depreciated straight-line to zero over its 4 year life. It will be worth $30,000 at the end of its life. The system will save Killington $60,000 before taxes in inventory- related costs. The relevant tax rate is 21%. This system will free up $45,000 in net working capital
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