One-time reduction-order processing costs

Assignment Help Financial Management

Reference no: EM13918511

Your firm is contemplating the purchase of a new $625,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $69,000 at the end of that time. You will save $255,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $84,000 (this is a one-time reduction). If the tax rate is 35 percent, what is the IRR for this project?

Reference no: EM13918511

Questions Cloud

Statement of cash flows : 1.The statement of cash flows is used for _____. 2. Nonoperating items on the income statement _____.

New seven-octave voice emulation implant : Project Evaluation [LO1] Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year Unit Sales 1 73,000 2 86,000 3 100,000 4 95,000 5 76,000 Production of the implants will require $1,520,000 in ne..

Create a compelling executive summary : This assignment consists of three (4) sections: a written project plan, revised business requirements document, project plan PowerPoint presentation, and a finalized project plan. You must submit the four (4) sections as separate files for the com..

Compute the priorities for each pairwise comparison matrix : Compute the priorities for each pairwise comparison matrix. Determine an overall priority for each system. Which stereo system is preferred?

One-time reduction-order processing costs : Your firm is contemplating the purchase of a new $625,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $69,000 at the end of that time. You will save $255,000 before..

Weaving and printing : Winchester Corporation makes printed cloth in two departments: weaving and printing. Currently, all product first moves through the weaving department and then through the printing department before it is sold to retail distributors for $2,500 per ro..

Create a strategic plan : Create a strategic plan, including the items below no more than 1800 words, not counting the words in citations and references. I already have the company overview, please do not include it.

Characterize pastoral societies : 1. Nomadic pastoralists have permanent settlements; and complete households shift location with the herd. House structures are highly stable, such as a tent or yurt.

The dividend yield is defined : The dividend yield is defined as:

User Account

All Pages