If the tax rate is 34 percent what is the irr for this


A firm is contemplating the purchase of a new $590,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $62,000 at the end of that time. You will save $220,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $77,000 (this is a one-time reduction). If the tax rate is 34 percent, what is the IRR for this project?

Solution Preview :

Prepared by a verified Expert
Finance Basics: If the tax rate is 34 percent what is the irr for this
Reference No:- TGS02859147

Now Priced at $10 (50% Discount)

Recommended (95%)

Rated (4.7/5)