Your firm is contemplating the purchase of a new 560000


Your firm is contemplating the purchase of a new $560,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $56,000 at the end of that time. You will save $280,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $71,000 (this is a one-time reduction). If the tax rate is 34 percent, what is the IRR for this project?

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Your firm is contemplating the purchase of a new 560000
Reference No:- TGS01358526

Expected delivery within 24 Hours