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How do i find out what the pretax cost savings woukd be? The cost savings? Your firm is contemplating the purchase of a new $560,000

How do i find out what the pretax cost savings woukd be? The cost savings? image text in transcribed
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Your firm is contemplating the purchase of a new $560,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $80,000 at the end of that time. You will be able to reduce working capital by $105,000 (this is a one-time reduction). The tax rate is 25 percent and the required return on the project is 13 percent. If the pretax cost savings are $150,000 per year, what is the NPV of this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ 14,746.80 Will you accept or reject the project? O Reject Accept If the pretax cost savings are $115,000 per year, what is the NPV of this project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV -77,580.53 Will you accept or reject the project? Accept O Reject At what level of pretax cost savings would you be indifferent between accepting the project and not accepting it? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Cost savings

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