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Gurchase of a new se68,000 computer based order entry system. The system wll be depreciated straight-line to zero over its six-year life. It will be
Gurchase of a new se68,000 computer based order entry system. The system wll be depreciated straight-line to zero over its six-year life. It will be beginning of the project. Working capital will revert back to normal at the end of your frm is contemplating the worth $55,000 at the end of that time. You will the project Assume the tax rate is 35 percent be able to reduce working capital by $50,000 at the What is the atertax salvage value of the equipment? (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g. 32.) Buppose your requined retum on the project is 9 percent and your pretax cost savings are $205,000 per year what is the aneual OCF? (Do not round intermediate calculations and round your answer to the nearest whole number,e.g 32.) OCF S 172275 What is the NPV of the project? (Do not round Intermediate calculations and round your answer to 2 declimal NPV Suppose your required return on the pr What is te anual OCF7(Do not round intermediate calculations and round your answer to the nearest whole number, 0.9-32) oject is 9 percent and your pretax cost savings are $145,000 per year $ 133275 s the NPV of the project? (Do not round your answer to 2 decimal 32.16
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