Problem 9.17 – Computer-Based Order Entry System (Cost Savings) NPV

Essentials of Corporate Finance

Ross, Westerfield, and Jordan

10th Edition and 11th Edition

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Difficulty – Medium

Determine the NPV of the computer-based system given various pretax cost savings. Should the project be accepted? Finally, determine the level of pretax savings whereby you would be indifferent between accepting and rejecting the project.

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