Question: Project Evaluation {LOL 2) Your rm is contemplating the purchase of a new $'I-20,000 million computerbased order entry system. The PVCCATS is $260,000, and the

Project Evaluation {LOL 2) Your rm is contemplating the purchase of

Project Evaluation {LOL 2) Your rm is contemplating the purchase of a new $'I-"20,000 million computerbased order entry system. The PVCCATS is $260,000, and the machine will be worth $230,000 at the end of the veyear life of the system. You will save $350,000 before taxes per year in order processing costs and you will be able to reduce working capital by $110,000 (this is a onetime reduction}. If the tax rate is 35 percent, what is the [RR for this nroiect

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