Question: Your company is considering a new computer system that will initially cost $ 1 million. It will save $ 3 0 0 , 0 0

Your company is considering a new computer system that will initially cost $1 million.
It will save $300,000 per year in inventory and receivables management costs.
The system is expected to last for five years and will be depreciated using 3-year MACRS.
The system is expected to have a salvage value of $50,000 at the end of year 5.
There is no impact on net working capital. The marginal tax rate is 40%. The required return is 8%.
What is the NPV?
Your company is considering a new computer system that will initially

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