Problem $10-16$ Project Evaluation $[$LO$1]$

Your firm is contemplating the purchase of a new $$515,000$ computer$-$based order entry

system. The system will be depreciated straight$-$line to zero over its five$-$year life. It will

be worth $$53,000$ at the end of that time. You will save $$153,000$ before taxes per year

in order processing costs, and you will be able to reduce working capital by $$78,000$

$($this is a one$-$time reduction$).$ If the tax rate is $21$ percent, what is the IRR for this project?

$($Do not round intermediate calculations and enter your answer as a percent rounded

to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$