Find the irr for the project


Your firm is contemplating the purchase of a new $600,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $64,000 at the end of that time. You will save $230,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $79,000 (this is a one-time reduction). If the tax rate is 30 percent, what is the IRR for this project?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Find the irr for the project
Reference No:- TGS0550447

Expected delivery within 24 Hours