Your firm is contemplating the purchase of a new $1,315,500 conputer-based order entry system.

a). what is the npv of this project?

b) what is the npv is pretax cost savings are $429,900 per year

c) at what level of pretax cost savings would you be indifferent to accepting the project and not accepting it?

Your firm is contemplating the purchase of a new $1,313,500 computer-based order entry system. The system will be depreciated straight-line to zero over its 5 -year life. It will be worth $127,800 at the end of that time, You will be able to reduce working capital by $177,500 (this is a one-time reduction). The tax rate is 25 percent and your required return on the project is 24 percent and your pretax cost savings are $597,100 per year. a. What is the NPV of this project? NPV b. What is the NPV if the pretax cost savings are $429,900 per year