What is the irr for project

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Firm is contemplating the purchase of a new machine costing $570,000. The machine will be depreciated straight line to zero over its five-year life. It will be worth $58,000 at the end of that time. You will save $270,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $73,000 (one time reduction). The tax rate is 35%. What is the IRR for this project?

Reference no: EM132455516

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