Question: ter 9 Homework instructions help Save & Exit Submit value 10.00 points Your firm is contemplating the purchase of a new $542,500 computer-based order entry
ter 9 Homework instructions help Save & Exit Submit value 10.00 points Your firm is contemplating the purchase of a new $542,500 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $48,000 at the end of that time. You will save $168,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $43,000 at the beginning of the project. Working capital will revert back to normal at the end of the project If the tax rate is 40 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., 32.16.) IRR % Hints References eBook & Resources 9 PM Type here to search hp 8 9 O 00 $ . 7 6 5 4 3 P
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