Your firm is contemplating the purchase of a new $791,000 computer based order entry system. The system will be depreciated straight-line to zero over its seven year life It will be worth $58,000 at the end of that time. You will be able to reduce working capital $53,000 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.

Requirement 1

Supposed your required return on the project is 8 percent and your pretax cost saving are $208,000 per year. What is the NPV of this project?

Requirement 2

Supposed your required return on the project is 8 percent and your pretax cost savings are $148,000 per year. What is the NPV of this project?

i need it broken down no excel format solving.I want it broken down

Supposed your required return on the project is 8 percent and your pretax cost saving are $208,000 per year. What is the NPV of this project?