Calculate the internal rate of return


Question: Your firm is contemplating the purchase of a new 758,500 dollars computer based order entry system. The system will be depreciated straight line to zero over its five year life. It will be worth 73,800 dollars at the end of that time. You will save 295,200 dollars before taxes per year in order processing costs and you will be able to reduce working capital by 43,164 dollars [this is a onetime reduction. If the tax rate is 34%, the IRR for this project is ___%.

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Finance Basics: Calculate the internal rate of return
Reference No:- TGS017205

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