Your firm is contemplating the purchase of a new 545000


Your firm is contemplating the purchase of a new $545,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $53,000 at the end of that time. You will save $295,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $68,000 (this is a one-time reduction). If the tax rate is 34 percent, what is the IRR for this project? (Round your answer to 2 decimal places. (e.g., 32.16))

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Your firm is contemplating the purchase of a new 545000
Reference No:- TGS01035164

Expected delivery within 24 Hours