Determine the irr for project

Assignment Help Finance Basics
Reference no: EM132421981

Your firm is contemplating the purchase of a new $505,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 6-year life. It will be worth $69,000 at the end of that time. You will save $177,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $48,000 at the beginning of the project. Working capital will revert back to normal at the end of the project. If the tax rate is 23 percent, what is the IRR for this project?

Reference no: EM132421981

Questions Cloud

What are 3 social trends faced by many united states-based : What are 3 economic trends faced by many United States-based businesses?What are 3 technological trends faced by many United States-based businessesses?
Business and management internal assessment : Business and Management Internal Assessment -Should Radisson expand its market towards resort or should concentrate only on opening more business hotel in Nepal
Case studies of islamic microfinance institution : How successful are the case studies of Islamic Microfinance institution, which Microfinance model would you prefer for emerging economies.
What are the appropriate risk mitigation strategies : What are the appropriate risk mitigation strategies for the six major risks faced by Islamic banks and financial institutions?
Determine the irr for project : Your firm is contemplating the purchase of a new $505,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 6-yea
What is the net operating income : X Limited owns and manages an office building with the following information:
What is the test for the tort of invasion of privacy : Can management/employers today use personal information and lifestyle posts on social media to make a determination of whether to hire someone? Why or why not?
Determine the dividend discount model : Marty is very fond of cola beverages and wants to include either Coca-Cola (KO - NYSE) or Pepsi (PEP - NYSE) in the large-cap equity portion of the portfolio.
Determine premium over conversion value for note : At that price, what is the premium over conversion value for each note?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the cost of external common equity

The market price of the stock is currently $48; however, flotation costs of $9 per share are expected if the new stock is issued. What is the cost of external common equity?

  Develop an essay with an argument

Develop a topic of your choice on any film we have studied since the midterm - films we have studied in the second half of the class and develop an argument

  In the past sunnyflax paid out all of its earnings as

in the past sunnyflax paid out all of its earnings as dividends. when the stock market opened for trading today

  Compute the sales for november

Compute the cash collections from sales for each month from January through March.

  Mean and standard deviation of the population

Find the mean and standard deviation of the sampling distribution and compare them with the mean and standard deviation of the population.

  What changes have occurred in the human service sector that

what changes have occurred in the human service sector that have made government and private contributors more

  Invasions of privacy and consumer manipulation

Some consumer groups believe that this information can lead to invasions of privacy and consumer manipulation. What's your take?

  Define capital rationing and explain why it can occur in

define capital rationing and explain why it can occur in the real

  What is total of pelamed net income plus interest payments

Pelamed Pharmaceuticals had EBIT of $429 million in 2010. In? addition, Pelamed had interest expenses of$115 million and a corporate tax rate of 30%.

  Milton corporation recently paid a dividend of 170 per

milton corporation recently paid a dividend of 1.70 per share is currently expected to grow at a constant rate of 5 and

  What is the value of the put option

What long position in the stock is necessary to hedge a long put option when the strike price is $32? Give the number of shares purchased as a percentage of the number of options purchased option.

  What is an independent event and a dependent event

What is an independent event and a dependent event.? Can you please provide an example of each type of event? Can you also include two additional examples?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd