A firm is considering purchasing a computer system


A firm is considering purchasing a computer system. The following data has been collected. - Cost of the system: $151,000 - Project life: 6 years - Salvage value at the end of year 6: $10,000 - Depreciation method: five-year MACRS - Tax rate: 40% - Annual revenue from project: $110,000 - Annual expenses (not including depreciation): $78,000 The firm will borrow the entire $151,000 at 5.6% interest to be repaid in 2 annual payments. The firm's MARR is 14%. Determine the IRR for the computer system. Enter your answer as a percentage between 0 and 100.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A firm is considering purchasing a computer system
Reference No:- TGS02702786

Expected delivery within 24 Hours