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Your firm is contemplating the purchase of a new $585,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year

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Your firm is contemplating the purchase of a new $585,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $61,000 at the end of that time. You will be able to reduce working capital by $76,000 (this is a one-time reduction). The tax rate is 30 percent and the required return on the project is 16 percent. If the pretax cost savings are $ 201,000 per year, what is the NPV of this project? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) NPV Will you accept or reject the project? O Accept O Reject If the pretax cost savings are $151,000 per year, what is the NPV of this project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) NPV Will you accept or reject the project? Accept Reject

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