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Your firm is contemplating the purchase of a new $ 5 6 0 , 0 0 0 computer - based order entry system. The system
Your firm is contemplating the purchase of a new $ computerbased order entry system. The system will be depreciated straightline to zero over its fiveyear life. It will be worth $ at the end of that time. You will be able to reduce working capital by $this is a onetime reduction The tax rate is percent and the required return on the project is percent.
If the pretax cost savings are $ per year, what is the NPV of this project? Do not round intermediate calculations and round your answer to decimal places, eg If the pretax cost savings are $ 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 decimal places, eg
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