Your firm is contemplating the purchase of a new $580,000 computer-based order entry system. The system will
Question:
Your firm is contemplating the purchase of a new $580,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $60,000 at the end of that time. You will save $210,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $75,000 (this is a one-time reduction). If the tax rate is 35 percent, what is the IRR for this project?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (10 reviews)
Input area Initial investment 580000 Pretax salvage value 60000 Cost s...View the full answer
Answered By
Charles mwangi
I am a postgraduate in chemistry (Industrial chemistry with management),with writing experience for more than 3 years.I have specialized in content development,questions,term papers and assignments.Majoring in chemistry,information science,management,human resource management,accounting,business law,marketing,psychology,excl expert ,education and engineering.I have tutored in other different platforms where my DNA includes three key aspects i.e,quality papers,timely and free from any academic malpractices.I frequently engage clients in each and every step to ensure quality service delivery.This is to ensure sustainability of the tutoring aspects as well as the credibility of the platform.
4.30+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
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 five-year life. It will be worth $50,000 at...
-
Your firm is contemplating the purchase of a new $780,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $45,000 at...
-
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 five-year life. It will be worth $30,000 at...
-
1. What is Anthropology, Sociology, and Political Science in your own understanding? 2. What is the nature of Anthropology, Sociology, and Political Science? 3. How are they similar with one another?
-
(x = - 29.5 MPa, (y = 29.5 MPa, Txy = 27 MPa Using Mohr's circle, determine (a) the principal stresses and (b) the maximum shear stresses and associated normal stresses. Show all results on sketches...
-
Consider the unadjusted trial balance of Burrows Landscaping at December 31, 2023, and the related month-end adjustment data: The following adjustments need to be made on December 31 before the...
-
Consider the Latin Square design and data from Bliss and Rose [1940] shown in Table 5.9. a. Use R to compute the ANOVA table. Interpret the results. b. Estimate the treatment effects. Interpret the...
-
Information for 2017 follows for Rolling Thunder Corp.: Retained earnings, January 1, 2017 ......................................................... $ 1,980,000 Sales revenue...
-
Please help with questions Image transcription text 1. For each of the scale interval values given in step 3, calculate the voltage resolution based on the bit resolution and the range of voltage...
-
Salalah Plastic Company is engaged in manufacturing plastic bottles. The organization has total capital of OMR 250,000. The organization has a target capital structure of 55% equity and 45% debt. The...
-
Dog Up! Franks is looking at a new sausage system with an installed cost of $480,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the...
-
You are evaluating two different silicon wafer milling machines. The Techron I costs $240,000, has a three-year life, and has pretax operating costs of $63,000 per year. The Techron II costs...
-
Eventually, for the study in question 15, Poindexter reported that r(8) = +.21, p > .05. (a) What should he conclude about this relationship? (b) What other computations should he perform to describe...
-
Candice's' Cupcakes is a new cupcake delivery company in Gainesville, Florida. The firm hires local college students to sell cupcakes door-to-door. Each of these "Sales Associates" sells cupcakes,...
-
A group of researchers collected information about labor force participation and sex among 11,920 individuals and created the following cross-tabulation with frequencies. What is the P(Male | No...
-
1. Exercise 30.1 (Variants of the Stag Hunt) Consider variants of the n-hunter Stag Hunt. That is, there are n number of hunters. Only m hunters, with 2 m
-
The top player on the Crabs is Hanson Edelmann and they eam $189,500 per season. Assuming this is their entire income answer the following questions using the table above: What is their total income...
-
What is the gauge pressure of the air inside an alveolus having a radius of 250 m if the surface tension of the fluid-lined wall is the same as for soapy water (37), and the gauge pressure in the...
-
Without performing detailed calculations, show that significant disproportionation of AuCl occurs if you attempt to make a saturated aqueous solution. Use data from Table 23.7 and Ksp(AuCl) = 2.0 x...
-
Using a graphing utility, graph y = cot -1 x.
-
Use the information and your calculations from question 31 to construct a 90 % and a 99 % confidence interval for b. Question 31 When we are interested in the relationship between a dependent...
-
Exchange Rates are exchange rate changes necessarily good or bad for a particular company?
-
International Risks at one point, Duracell International confirmed that it was planning to open battery-manufacturing plants in China and India. Manufacturing in these countries allows Duracell to...
-
International Risks at one point, Duracell International confirmed that it was planning to open battery-manufacturing plants in China and India. Manufacturing in these countries allows Duracell to...
-
Apply Euler's method by hand with N = 4 to find yo, Y1, Y2, Y3, Y4 on [0,1] where Y' y' = - 2y + 3t y(0) =1 Note: Please don't use Python for this. You are allowed to use a calculator do the...
-
What amount paid on September 6 is equivalent to $ 2 , 6 0 0 paid on the following December 1 if money can earn 6 . 6 % ? ( Use 3 6 5 days a year. Do not round intermediate calculations and round...
-
For R1= 6.8k, and R2= 1k, Then: V(1) = v V. 1(2) = mA.
Study smarter with the SolutionInn App