Computer-based order entry system

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Reference no: EM131851797

Your firm is contemplating the purchase of a new $772,800 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $69,000 at the end of that time. You will save $303,600 before taxes per year in order processing costs and you will be able to reduce working capital by $70,270 (this is a one-time reduction). If the tax rate is 30 percent, the IRR for this project is percent.

Reference no: EM131851797

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