Your firm is contemplating the purchase of a new $832,500 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $81,000 at the end of that time. You will be able to reduce working capital by $112,500 (this is a one-time reduction). The tax rate is 30 percent and your required return on the project is 18 percent and your pretax cost savings are $241,850 per year.

Requirement 1:What is the NPV of this project?(Click to select)$-57,010.86$-55,835.38$-61,712.79$-60,537.31$-58,774.08

Requirement 2:What is the NPV if the pretax cost savings are $335,850 per year?(Click to select)$151,403.58$154,343.46$146,993.77$142,583.96$139,644.08

Requirement 3:At what level of pretax cost savings would you be indifferent between accepting the project and not accepting it?

(Click to select)$281,190.56$238,039.65$282,134.47$268,699.50$255,264.52