Your firm is contemplating the purchase of a new $$535,000$ computer$-$based order entry system. The system will be depreciated

straight$-$line to zero over its five$-$year life. It will be worth $$30,000$ at the end of that time. You will be able to reduce working capital by

$$60,000$ at the beginning of the project. Working capital will revert back to normal at the end of the project. Assume the tax rate is $24$

percent.

a$.$ Suppose your required return on the project is $11$ percent and your pretax cost savings are $$150,000$ per year. What is the NPV of

the project?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

b$.$ Suppose your required return on the project is $11$ percent and your pretax cost savings are $$100,000$ per year. What is the NPV of

the project?

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your

answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$