Transcribed Image Text
Your firm is contemplating the purchase of a new $575,000computer-based order entry system. The system will be depreciatedstraight-line to zero over its 7-year life. It will be worth$90,000 at the end of that time. You will save $205,000 beforetaxes per year in order processing costs, and you will be able toreduce working capital by $55,000 at the beginning of the project.Working capital will revert back to normal at the end of theproject. If the tax rate is 25 percent, what is the IRR for thisproject? (Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16.)
Other questions asked by students
Q
How would I code the following in assembly language? Use the Keil programming environment to code...
Electrical Engineering
Q
Madison Corp. has a hurdle rate/required rate of return of 9%. Operating income Average Operating...
Accounting