Review problem of computer-based order entry system

Assignment Help Finance Basics

Reference no: EM131975103

Question: Your firm is contemplating the purchase of a new $798,000 computer-based order entry system. The system will be depreciated straight-line to zero over its seven-year life. It will be worth $59,000 at the end of that time. You will save $179,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $54,000 at the beginning of the project. Working capital will revert back to normal at the end of the project. If the tax rate is 30 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 %

Reference no: EM131975103

Questions Cloud

Margin of error me that corresponds to a sample : Find the margin of error M.E. that corresponds to a sample of size 17 with a mean of 40.3 and a standard deviation of 7.8 at a confidence level of 99%.

What should be current rate for two-year treasury security : According to the unbiased expectations theory, what should be the current rate for a two-year Treasury security?

What was the amount transferred to finished goods : Schnek Company, which uses weighted average process costing, had an equivalent cost per unit. What was the amount transferred to finished goods?

Compute the expected annual net cash receipts : Assuming that the car wash will be open 52 weeks a year, compute the expected annual net cash receipts from its operation

Review problem of computer-based order entry system : Your firm is contemplating the purchase of a new $798,000 computer-based order entry system. The system will be depreciated straight-line to zero.

Find the margin of error of poll : In a recent poll, 480 people were asked if they liked dogs, and 60% said they did. Find the margin of error of this poll, at the 99% confidence level.

What profit do you actually expect : What profit do you actually expect? If you could get 400 shares in Speith and 400 shares in McIlroy, what would your profit be?

Prepare the adjusting entry for schramel advertising company : Prepare the adjusting entry at December 31, and using T-accounts, enter the balances m the accounts, post the adjusting entry and indicate the adjusted balance.

Null and alternative hypotheses for a test : A Seattle department store sampled 87 items sold in January and found that 5 of the items were returned.

User Account

All Pages