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Your firm is contemplating the purchase of a new $590,000computer-based order entry system. The system will be depreciatedstraight-line to zero over its 5-year life. It will be worth$77,000 at the end of that time. You will save $182,000 beforetaxes per year in order processing costs, and you will be able toreduce working capital by $92,000 (this is a one-time reduction).If the tax rate is 23 percent.what is the IRR for this project? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)
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