You are considering the purchase of a computer system in your bike shop. The system costs $40,000 and can be depreciated using straight line depreciation over four years to zero value. The system will be worthless after 4 years. Because of marketing and accounting efficiencies, you expect the pretax operating cost savings would be 15000 each year you have the computers. The tax rate is 34% and the firm's required return is 15%. Should you purchase the computers?

Please show your steps clearly.