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Sement Your firm is contemplating the purchase of a new $495,000 computer-based order entry system. The system will be depreciated straight-line to zero over its

Sement Your firm is contemplating the purchase of a new $495,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $41,000 at the end of that time. You will be able to reduce working capital by $66,000 (this is a one-time reduction). The tax rate is 22 percent and the required return on the project is 10 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 Will you accept or reject the project? O Reject O 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, eg.. 32.16.) NPV Will you accept or reject the project? Accept Reject At what level of pretsx cost savings would you be indifferent between accepting the project and not accepting ? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Cast savings
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Your firm is contemp ating the purchese of s new \$495,000 computereased arder thary de worh $41,000 st the end of thet time. You will be bble to resuce working cogtel by $66,000 ifhls 's a onesime reduction). The tex rete is 22 persent snd the requlred return on the project 's 10 percent. round Intermediate calculations and round your answer to 2 declimsl places. e.g. 32 .i.) Will you accest ar inject the project? Reject Acteat negative answer should be Indicated by a minus sign. Do not round intermediate colculations and round your snswer to 2 decimal pleces, eg, 32:15.) Will you scesest or reject the project? Accept Reject At whot lavei af pretsx cost sevinge wouls you be lnstferent between sccepting the aroject and not scceating \&? (Do not round Intermediste calculetions and round your answer to 2 decimal plects, e.9. 3216.1

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