What is the IRR for this project

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Reference no: EM131937261

Your firm is contemplating the purchase of new 300,000 computer based order entry system. the system willl be depreciated using the MACRS 3 year depreciation schedule. it will be worth 20000 at the end of the project in 5 years. you will save 70000 before taxes per year in order processing costs, and you will have to increase net working capital by 10000. if the tax rate is 34 percent what is the IRR for this project?

Reference no: EM131937261

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