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Your company is considering a new computer system that will initially cost $1 million. It will save $300,000 per year in inventory and receivables management
Your company is considering a new computer system that will initially cost $1 million. It will save $300,000 per year in inventory and receivables management costs. The system is expected to last for five years and will be depreciated using 3-year MACRS. The system is expected to have a salvage value of $50,000 at the end of year 5. There is no impact on net working capital. The marginal tax rate is 40%. The required return is 8%. how can you find the 210,000 in the net working capital where do u get 30,000 from
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