User Account

All Pages

What is the irr for project

Assignment Help Finance Basics
Reference no: EM132770468

The firm is contemplating the purchase of a new $575,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $59,000 at the end of that time. It will save $265,000 before taxes per year in order processing costs, and it will be able to reduce working capital by $74,000 (this is a one-time reduction). If the tax rate is 34 percent, what is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM132770468

Questions Cloud

Compare classical economics and keynesian economics : Compare and contrast classical economics and Keynesian economics. What are the major differences between them? Which model would you prefer?
What the amortization of the acquisition differential : In consolidating a self-sustaining foreign operation, the amortization of the acquisition differential? should be translated at the historical rate.
What is another term for translation exposure : What is another term for translation exposure? Under ASPE, hedge accounting is? more restrictive and more complicated than under IFRS.
Which forward contracts must be recorded because : Under IFRS, forward contracts must be recorded because? At the end of the fiscal period, under the temporal method, technically, sales should be reported at
What is the irr for project : The firm is contemplating the purchase of a new $575,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-y
Which is not required to be disclosed by public companies : Which information is not required to be disclosed by public companies? Which statements about the primary beneficiary of a variable interest entity (VIE) is not
How can you address issues on a micro and macro level : When pieces of cloth are sewn together, you might have trouble discerning the individual pieces of cloth that make the final garment, but by looking carefully.
What income taxes and the company should : Which is higher than its tax base. The acquisition is not part of a business combination. Under IAS 12: Income Taxes, the company should
What is the financial breakeven point : The tax rate is 34 percent and the discount rate is 15 percent. What is the financial breakeven point?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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