Elton International is considering the installation of a new computer system that will cut annual operating costs by $16,500 but not affect sales.The system will cost $68,000 and will be depreciated to zero over its 7-year life using the straight-line method.What is the amount of the earnings before interest and taxes (EBIT) ?
A) −$26,214.29
B) $17,014.29
C) $6,785.71
D) $9,308.71
E) −$9,714.29
Correct Answer:
Verified
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