Project Evaluation Your firm is contemplating the purchase of a new $850,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $75,000 at the end of that time. You will save $320,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $105,000 (this is a one-time reduction). If the tax rate is 35 percent, what is the IRR for this project?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.