Your firm is contemplating the purchase of a new $$495,000$ computer$-$based order entry system. The system will be depreciated straight$-$line to zero over its five$-$year life. It will be worth $$41,000$ at the end of that time. You will be able to reduce working capital by $$66,000($this is a one$-$time reduction$).$ The tax rate is $22$ percent and the required return on the project is $10$ percent.

If the pretax cost savings are $$150,000$ per year, what is the NPV of this project? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

NPV $$,$$$,75,961\mathrm{.}69$

Will you accept or reject the project?

Reject

Accept

If the pretax cost savings are $$115,000$ per year, what is the NPV of this project? $($A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

NPV $$$-27,526\mathrm{.}80$

Will you accept or reject the project?

Accept

Reject

At what level of pretax cost savings would you be indifferent between accepting the project and not accepting it$?($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Cost savings