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Your firm is contemplating the purchase of a new $773,500 computer-based order entry system. The system will be depreciated straight-line to zero over its sevn-year
Your firm is contemplating the purchase of a new $773,500 computer-based order entry system. The system will be depreciated straight-line to zero over its sevn-year life. It will be worth $53,000 at the end of that time. You will be able to reduce working capital by $48,000 at the beginning of the project. Working capital will revert back to normal at the end of the project. Assume the tax rate is 30 percent
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