2024 – Your firm is contemplating the purchase of a new 600 000 computer based order
Your firm is contemplating the purchase of a new $600,000 computer-based order entry system. The system will be depreciated straight-line… – 2024
Your firm is contemplating the purchase of a new $600,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $64,000 at the end of that time. You will save $230,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $79,000 (this is a one-time reduction).
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