This system is expected to have a 5-year life and will be, Ask an Expert

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Matty's Place is considering the installation of a new computer system that will cut annual operating costs by $12,000. The system will cost $48,000 to purchase and install. This system is expected to have a 5-year life and will be depreciated to zero using straight-line depreciation. What is the amount of the earnings before interest and taxes for this project?

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