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your firm is contemplating the purchase of a new $ 5 3 0 , 0 0 0 computer based order enrty system. the system will
your firm is contemplating the purchase of a new $ computer based order enrty system. the system will be depreciated straightline to zero over its year life. it will be worth $ at the end of that time. you will save $ before taxes per year in order processing costs, and you will be able to reduce working capital by $ at the begunning if the project. working caputal will revert back to normal at the end of the project. the tax rate is percent. what is the aftertax salvage value of th equipment? what is the annual operating cash flow? what is IRR for this project?
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