Question: Problem 9-16 Project Evoluation [LO 2] Your firm is contemplating the purchase of a new $535,000 compuacr based order entry system. The system will be

 Problem 9-16 Project Evoluation [LO 2] Your firm is contemplating the

Problem 9-16 Project Evoluation [LO 2] Your firm is contemplating the purchase of a new $535,000 compuacr based order entry system. The system will be depreciated straight fine to zero cver its 7 -year Ife in will be worth $78,000 at the end of that time. You will save $189,000 before taxes per year in order processing costs, and you wh be able to reduce worling capital by $51,000 at the beginning of the project. Working captal will revert bock to normal at the end of the project if the tax rate is 21 percent, what is the IRR for this project? Note: Do not round intermediote calkulations and enter your answer as a percent rounded to 2 decimal places, e.g. 3216

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