# Your firm is contemplating the purchase of a new

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## Your firm is contemplating the purchase of a new

Your firm is contemplating the purchase of a new \$480,000 computer-based order entry system. The to zero the end of that time. You will be able to reduce working capital by \$35,000 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. Suppose your required return on the project is 10 percent and your pretax cost savings are \$155,000 per year. What is the NPV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g, 32.16).) 42560 Requirement 2: Suppose your required return on the project is 10 percent and your pretax cost savings are \$125,000 per year. What is the NPV of the project? (Do not round intermediate calculations. Nogative amount should be indicated by a minus sign. Round your answer to 2 decimal places (o.g, 32.16)) NPV \$ 31360

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Your firm is contemplating the purchase of a new

Your firm is contemplating the purchase of a new