= Chegg Study Textbook Solutions Expert Q&A Study Pack Practice home / study / business / finance / finance questions and answers / your firm is contemplating the purchase of a new $48 Question: Your firm is contemplating the purchase of a new $ See this question in the app 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? Expert Answerho Cash flow