Run a sensitivity analysis on savings to NPV, sales growth rate to NPV, and taxes to NPV. S. Write up your results from ql-q4 and explain if you would accept the project and what risks should be further examined.
1. Your firm is contemplating the purchase of a new $500,000 computer-based order entry system. The system will be depreciated using the MACRS 3-year depreciation schedule. It will be worth 550,000 at the end of the project in 5 years. You will save $50,000 before taxes per year in order processing costs, and you will […]