What is the irr for this project

Assignment Help Finance Basics
Reference no: EM13263894

Your firm is thinking about the purchase of a new $630,000 mobile-compatible order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $70,000 at the end of that time. You will save $260,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $85,000 (this is a one-time reduction). If the tax rate is 30 percent, what is the IRR for this project.

Reference no: EM13263894

Questions Cloud

What is the effective annual interest rate : Maltz Landscaping has an average collection period of 33 days for its accounts receivable. Currently, Maltz factors all of its receivables at a 5 percent discount. What is the effective annual interest rate on the financing from the factor?
What are the savings from the lockbox : Rosenthal Design has daily sales of $37,909. The financial management team determined that a lockbox would reduce the collection time by 1.3 days. Assuming the company can earn 7.1 percent interest per year, what are the savings from the lockbox?
A large energy company provides a call centre to answer cust : A large energy company provides a call centre to answer customers’ queries. The call centre management is keen to understand the activity and performance levels that the call centre has experienced over the last winter and what they might do to impro..
Design a synchronous 2-bit binary up-counter : Design a synchronous 2-bit, binary, up-counter using the following specification: The counter has five inputs ( not including the clock) and three outputs. The inputs are CLR ("Clear"), LOAD, COUNT, LB and LA.
What is the irr for this project : You will save $260,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $85,000 (this is a one-time reduction). If the tax rate is 30 percent, what is the IRR for this project.
What is the shortest distance between the towers : Radio station KBOB broadcasts at a frequency of 85.7 MHz on your dial using a radio waves that travel at 3.00X10^8 m/s. What's the shortest distance between the towers
Discuss the recent privacy issues that challenged facebook : Discuss the recent privacy issues that challenged Facebook. Will privacy restrictions limit its ability to offer personal marketing opportunities?
How to find the voltage in the capacitor vc : if we have a circuit with R= 5, L=22mH, C=22nF , Vs=10 and the switch S was opens for a long time and it closes at time t=0 second. all connected in series, how can i find the voltage in the capacitor Vc
What is the relationship between discounting and compounding : List at least two actions that Emily and Paul could take to accumulate more of their retirement (think about i and n).

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the beta of stock

The correlation between the returns on Ceramics Craftsman, Inc., and the returns on the S&P 500 is 0.675. The variance of the returns on Ceramics Craftsman, Inc., is 0.004225,

  What are advantage and disadvantage of fixed exchange rates

What are the advantages and disadvantages of fixed exchange rates? Which would you prefer for the USD and why?

  Securing an additional loan

Do you think it is a good idea for a corporations to have liabilities (debt) when running their business? Explain your answer.

  Identifying best method of finance

Alpha Waffles need to expand & increase their market share by 40 percent in the next 2 years. They would need to improve their packaging & spend money on advertising.

  Find stockholders equity

Review the corporations financial statements for pepsi and coke Examine how stockholders equity section of each corporation. What these 2 company's disclose about their stockholders equity section differs.

  Calculate after-tax cost of debt financing

Last year Wei Guan corporation had $350 million of sales, and it had $270 million of fixed assets that were used at 65 percent of capacity. In millions, by how much could Wei Guan's sales raise.

  Calculating risk premium

Suppose if WalMart has a beta of 1.1, current risk-free rate is 3.5%, average risk free rate over the last 70 years is 3.2 percent, and the expected return on the stock market is 12.3 percent,

  Compute degree of financial leverage

Albatross Airline's fixed operating expense are $5.8 million, and its variable cost ratio is .20. The firm has $2 million in bonds outstanding with a coupon interest rate of 8%. Albatross has 30,000 shares of preferred stock outstanding,

  How can separate taxation of corporate income be justified

Explain how corporate income could be explained under a comprehensive income tax without recourse to a corporate income tax? How can separate taxation of corporate income be justified?

  Constant nominal policy-partial-adjustment strategy

Delta Corporation earned $2.50 per share during fiscal year 2008 and paid cash dividends of $1.00 per share. What is Delta's payout ratio for fiscal year 2008?

  Find current price of the preferred stock

Preferred stock of ABC corporation pays an yearly dividend at the rate of 4.5 percent per share. If ABC Corp's preferred shares are issued at $25 par value per share, & comparable yields are at 7.25 percent,

  Find the profit received by the nursing home

A not-for profit nursing home has total expenses of $20 million, sales tax in the state is 7 percent, expenses are broken down into salaries (12 million dollar), supplies (6 million dollar), and pharmacy (2 million dollar).

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!

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