Your firm is contemplating the purchase of a new $555000 computer-based order

Your firm is contemplating the purchase of a new $555000 computer-based order entry system. The system will be depreciated straight-line to
zero over its five-year life. It will be worth $55000 at the end of that time. You will be able to reduce working capital by $70000 (this is
a one-time reduction). The tax rate is 35 percent and the required return on the project is 15 percent.

If the pretax cost savings are $215000 per year what is the NPV of this project? (Do not round intermediate
calculations and round your final answer to 2 decimal places. (e.g. 32.16))

If the pretax cost savings are $165000 per year what is the NPV of this project? (Negative amount should be
indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g. 32.16))

At what level of pretax cost savings would you be indifferent between accepting the project and not accepting it? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g. 32.16))