Question: Need all calculations, steps and explanations, no excel solutions please Your firm is contemplating the purchase of a new $425,000 computer-based order entry system. The

 Need all calculations, steps and explanations, no excel solutions please Your

Need all calculations, steps and explanations, no excel solutions please

Your firm is contemplating the purchase of a new $425,000 computer-based order entry system. The PVCCATS is $91,209, and the machine will be worth $30,000 at the end of the five-year life of the system. You will save $130,000 before taxes per year in order processing costs and you will be able to reduce working capital by $60,000 (this is a onetime reduction and will be reclaimed at the end of the project). If the tax rate is 35 percent, what is the IRR for this project

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