Question: Ben is looking at a new computer system with an installed cost of $ 5 6 0 0 0 0 . THis cost will be

Ben is looking at a new computer system with an installed cost of $560000. THis cost will be depreciated straight-line to zero over the project 's five-year life, at the end of which the computer system can be scrapped for $85000. The computer system will save the company $165000 per year in pretax operatiing costs, and the system requires an initial investment in net working capital of $ 29000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project?

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