Your firm is contemplating the purchase of a new $633,000 computer-based order entry system. The system will be depreciated straight-line to zero over its six-year life. It will be worth $43,000 at the end of that time. You will be able to reduce working capital by $38,000 at the beginning of the project. Working capital will revert back to normal at the end of the project. Assume the tax rate is 35 percent.

Your firm is contemplating the purchase of a new $633,000 computer-based order entry system. The system will be depreciated straight-line to zero over its six-year life. It will be worth $43,000 at the end of that time. You will be able to reduce working capital by $38,000 at the beginning of the project. Working capital wll revert back to normal at the end of the project. Assume the tax rate is 35 percent. Required What is the aftertax salvage value of the equipment? (Do not round intermediate calculations. Round your answer to the nearest whole number (e.g., 32).) Aftertax salvage value a: Suppose your required return on the project is 9 percent and your pretax cost savings are $193,000 per ear What is the annual OCF? (Do not round intermediate calculations. Round your answer to the nearest whole number (e.g., rest whole number (e.g., 32).) OCF What is the NPV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) NPV b: Suppose your required return on the project is 9 percent and your pretax cost savings are $133,000 per ear What is the annual OCF? (Do not round intermediate calculations. Round your answer to the nearest whole number (e.g., rest whole number (e.g., 32).) OCF What is the NPV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) NPV