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

Your firm is contemplating the purchase of a new $$485,000$ computer$-$based order entry system. The system will be depreciated straight$-$line to zero over its five$-$year life. It wili be worth $$25,000$ at the end of that time. You will save $$145\mathrm{.}000$ before taxes per year In order processting costs, and you witt be able to reduce working capital by $$50,000($this is a one$-$time reduction$).$ If the tax rate is $24$ percent, what is the IRR for this project?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$\mathrm{.}9-,32\mathrm{.}16.$

IRR