Question: Please done in excel sheet. Project Evaluation Your firm is contemplating the purchase of a new $575,000 com- puter-based order entry system. The system will
Please done in excel sheet.
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 this project
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