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 $$41,000at$ the end $of$ that time. You will $be$ able $to$ reduce working capital $by$

$$66,000at$ the beginning $of$ the project. Working capital will revert back $to$ normal $at$ the end $of$ the project. The tax rate $is22$ percent

and the required return $on$ the project $is10$ percent.

$a.If$ the pretax cost savings are $$150,000$ per year, what $is$ the $NPVof$ this project?

Note: $Do$ not round intermediate calculations and round your answer $to2$ decimal places, $e.g.,32\mathrm{.}16.$

$b.If$ the pretax cost savings are $$115,000$ per year, what $is$ the $NPVof$ this project?

Note: A negative answer should $be$ indicated $by$ a minus sign. $Do$ not round intermediate calculations and round your

answer $to2$ decimal places, $e.g.,32\mathrm{.}16.$

$c.At$ what level $of$ pretax cost savings would you $be$ indifferent between accepting the project and not accepting $it?$

Note: $Do$ not round intermediate calculations and round your answer $to2$ decimal places, $e.g.,32\mathrm{.}16.$