What is the irr for this project

Reference no: EM131414427

Project Evaluation Your firm is contemplating the purchase of a new $730,000 computerbased order entry system. The system will be depreciated straight-line to zero over its fi ve-year life. It will be worth $75,000 at the end of that time. You will save $280,000 before taxes per year in order processing costs and you will be able to reduce working capital by $95,000 (this is a one-time reduction). If the tax rate is 35 percent, what is the IRR for this project?

Reference no: EM131414427

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