Question: Please show how to solve in excel Order Entry System Your firm is contemplating the purchase of a new $575,000 computer-based order entry system. The

Order Entry System Your firm is contemplating the purchase of a new $575,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five years of useful life. It will be worth $10,000 at the end of that time. You will save $176,000 in labor costs for processing orders and you will immediately reduce net working capital by $80,000 until the project is finished. If the tax rate is 24 percent, what is the IRR for this project? Order Entry System Net Income Operating Cash Flow Investing Cash Flow Year EBIT/EBT 0 1 2 3 4 5
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
