Question: 22. Project Evaluation [LO], 2.] Your firm is contemplating the purchase ofa new $120,000 million computer-based ordei' entry system. The PVCCATS is $260,000, and the

22. Project Evaluation [LO], 2.] Your firm is contemplating the purchase

ofa new $120,000 million computer-based ordei' entry system. The PVCCATS is $260,000,

22. Project Evaluation [LO], 2.] Your firm is contemplating the purchase ofa new $120,000 million computer-based ordei' entry system. The PVCCATS is $260,000, and the machine will be worth $230,000 at the end of the ve-year life ofthe system. You will save $350,000 before taxes per year in order processmg costs and you wiit be able to reduce working capital by $110,000 (this is a one-time reduction]. If the tax rate is 35 percent. what is the [RR for this projoci

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