Your firm is contemplating the purchase of a new $1,344,000 computer-based order entry system....

Your firm is contemplating the purchase of a new $1,344,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $120,000 at the end of that time. You will save $528,000 before taxes per year in order processing costs and you will be able to reduce working capital by $206,897 (this is a one-time reduction)