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Please done in excel sheet. Project Evaluation Your firm is contemplating the purchase of a new $575,000 com- puter-base...
Project Evaluation Your firm is contemplating the purchase of a new $575,000 com- puter-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $60,000 at the end of that time. You will save $176,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $80,000 (this is a one-time reduction). If the tax rate is 23 percent, what is the IRR for...
Your firm is contemplating the purchase of a new $675,000 computer-based order entry system. The system will be depreciated straight-line to zero over its six-year life. It will be worth $56,000 at the end of that time. You will save $176,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $51,000 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 $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 $670,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $141,000 at the end of that time. You will save $214,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $156,000 (this is a one-time reduction). If the tax rate is 24 percent, what is the IRR for this project?
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?
The firm is contemplating the purchase of a new $490,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth$38,000 at the end of that time. You will save $143,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $63,000 (this is a one-time reduction). If the tax is 21 percent, what is the IRR for this project?
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 $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 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 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...