What is the npv of the project if discount rate is given

Reference no: EM131975285

Question: Your firm is contemplating the purchase of a new $691,645 computer-based order entry system. The system will be depreciated straight-line to zero over its six-year life. It will be sold for $55,035 at the end of that time. You will save $225,657 before taxes per year in order processing costs, and you will be able to reduce working capital by $52,626 at the beginning of the project. Working capital will revert back to normal at the end of the project. The tax rate is 34 percent. What is the NPV of this project if the discount rate is 8.5 percent?

Reference no: EM131975285

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