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Question 6 (14 points) Oberon Inc. is considering the installation of an automation system that will cost $600,000. The system will be used in a

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Question 6 (14 points) Oberon Inc. is considering the installation of an automation system that will cost $600,000. The system will be used in a 5-year project, but its depreciation schedule is 3- year straight-line to zero. The required initial working capital investment is $48,000, the tax rate is 25%, and the discount rate for the project is 11%. The system has an estimated Year 5 salvage value of $85,000. a. What level of pretax cost savings does Oberon require for this project to be financially acceptable? b. If you conduct sensitivity analysis, how will your NPV change with respect to pretax cost saving

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