Estimated savings-first year, $120,000
Estimated savings-second year, $300,000
Estimated savings-third, fourth, and fifth years,
add 7 percent to each previous year
Estimated one-time costs-first year, $450,000
Estimated additional operating costs-first year, $110,000
Estimated additional operating costs-second year, $140,000
Estimated additional operating costs-third, fourth, and fifth
years, add 7
Percent to the previous year
Federal income tax rate-48 percent
Present value of $1 at 20 percent-first year (calculate with Excel
formula)
Present value of $1 at 20 percent-second year, (calculate...