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value: 3.00 points Your firm is contemplating the purchase of a new $1,831,500 computer-based order entry system. The system will be depreciated straight-line to zero
value: 3.00 points Your firm is contemplating the purchase of a new $1,831,500 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $178,200 at the end of that time. You will be able to reduce working capital by $247,500 (this is a one-time reduction). The tax rate is 34 percent and your required return on the project is 23 percent and your pretax cost savings are $623,100 per year. Requirement 1: What is the NPV of this project? (Click to select) Requirement 2: What is the NPV if the pretax cost savings are $865,400 per year? Click to select) Requirement 3: At what level of pretax cost savings would you be indifferent between accepting the project and not accepting it? (Click to select)
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