IRR
Your firm is contemplating the purchase of a new $585,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $73,000 at the end of that time. You will save $180,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $88,000 (this is a one-time reduction). If the tax rate is 22 percent, what is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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Your firm is contemplating the purchase of a new $640,000 computer-based order entry system. The system...
Your firm is contemplating the purchase of a new $640,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $117,000 at the end of that time. You will save $202,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $132,000 (this is a one-time reduction). If the tax rate is 23 percent, what is the IRR for this project? (Do...
Your firm is contemplating the purchase of a new $485,000 computer-based order entry system. The system will be deprecia...
Your firm is contemplating the purchase of a new $485,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $35,000 at the end of that time. You will save $140,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $60,000 (this is a one-time reduction). If the tax rate is 24 percent, what is the IRR for this project? (Do...
Your firm is contemplating the purchase of a new $630,000 computer-based order entry system. The system...
Your firm is contemplating the purchase of a new $630,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $109,000 at the end of that time. You will save $198,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $124,000 (this is a one-time reduction). If the tax rate is 21 percent, what is the IRR for this project? (Do...
Your firm is contemplating the purchase of a new $635,000 computer-based order entry system. The system...
Your firm is contemplating the purchase of a new $635,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $113,000 at the end of that time. You will save $200,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $128,000 (this is a one-time reduction). If the tax rate is 22 percent, what is the IRR for this project? (Do...
Your firm is contemplating the purchase of a new $565,000 computer-based order entry system. The system...
Your firm is contemplating the purchase of a new $565,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $83,000 at the end of that time. You will save $173,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $108,000 (this is a one-time reduction). If the tax rate is 21 percent, what is the IRR for this project? (Do...
Your firm is contemplating the purchase of a new $530,000 computer-based order entry system. The system...
Your firm is contemplating the purchase of a new $530,000 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 $159,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $87,000 (this is a one-time reduction). If the tax rate is 24 percent, what is the IRR for this project? (Do...
Your firm is contemplating the purchase of a new $495,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $41,000 at the end of that time. You will save $145,000 before taxe
Your firm is contemplating the purchase of a new $495,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $41,000 at the end of that time. You will save $145,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $66,000 (this is a one-time reduction). If the tax rate is 22 percent, what is the IRR for this project? (Do not...
Your firm is contemplating the purchase of a new $425,000 computer-based order entry system. The system...
Your firm is contemplating the purchase of a new $425,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $48,000 at the end of that time. You will save $149,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $41,000 at the beginning of the project. Working capital will revert back to normal at the end of the project. If...
Your firm is contemplating the purchase of a new $395,000 computer-based order entry system. The system...
Your firm is contemplating the purchase of a new $395,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $30,000 at the end of that time. You will save $125,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $35,000 at the beginning of the project. Working capital will revert back to normal at the end of the project. If...
Your firm is contemplating the purchase of a new $410,000 computer-based order entry system. The system...
Your firm is contemplating the purchase of a new $410,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $39,000 at the end of that time. You will save $137.000 before taxes per year in order processing costs, and you will be able to reduce working capital by $38,000 at the beginning of the project. Working capital will revert back to normal at the end of the project. If...
Your firm is contemplating the purchase of a new $640,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $117,000 at the end of that time. You will save $202,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $132,000 (this is a one-time reduction). If the tax rate is 23 percent, what is the IRR for this project? (Do...
Your firm is contemplating the purchase of a new $425,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $48,000 at the end of that time. You will save $149,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $41,000 at the beginning of the project. Working capital will revert back to normal at the end of the project. If...
Your firm is contemplating the purchase of a new $395,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $30,000 at the end of that time. You will save $125,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $35,000 at the beginning of the project. Working capital will revert back to normal at the end of the project. If...
Your firm is contemplating the purchase of a new $410,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $39,000 at the end of that time. You will save $137.000 before taxes per year in order processing costs, and you will be able to reduce working capital by $38,000 at the beginning of the project. Working capital will revert back to normal at the end of the project. If...
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