The system will be depreciated straight-line to zero over


Your firm is contemplating the purchase of a new $403,200 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $36,000 at the end of that time. You will save $158,400 before taxes per year in order processing costs and you will be able to reduce working capital by $55,777 (this is a one-time reduction). Required : If the tax rate is 32 percent, what is the IRR for this project? (Do not round your intermediate calculations.) rev: 09_18_2012 25.20% 17.42% 26.46% 24.19% 24.02%

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Financial Management: The system will be depreciated straight-line to zero over
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