What is the irr for this project

Reference no: EM13292848

Your firm is contemplating the purchase of a new $1,646,400 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $147,000 at the end of that time. You will save $646,800 before taxes per year in order processing costs and you will be able to reduce working capital by $59,240 (this is a one-time reduction).

Required :

If the tax rate is 33 percent, what is the IRR for this project? (Do not round your intermediate calculations.)

A 20.54%
B 21.40%
C 20.29%
D 19.45%
E 22.47%

Reference no: EM13292848

Questions Cloud

What is maximum number of operations that can be specified : A computer has a 32-bit instruction word broken into fields as follows: opcode, six bits; two register fields, five bits each; and one immediate operand/register field, 16 bits (a) What is the maximum number of operations that can be specified

Discuss consumer perception and attitude formation : You have just launched a new organic chocolate bar that is priced 25% higher than an equivalent Cadbury chocolate bar. Assume that both chocolate bars tastes are very similar to each other

What is the project equivalent annual cost : If the required return is 19 percent, what is the project's equivalent annual cost, or EAC? (Do not round your intermediate calculations.)

How would the km change for methanol : How would the Km change for methanol compared to ethanol and how would the Km's of methanol and isopropanol compare.

What is the irr for this project : If the tax rate is 33 percent, what is the IRR for this project? (Do not round your intermediate calculations.)

At what level of pretax cost savings would be indifferent : At what level of pretax cost savings would you be indifferent between accepting the project and not accepting it?

Marketers are concerned with consumer perception : "Firms always want consumers to notice changes or modifications to their product lines." Using consumer behaviour concepts, discuss this statement. Further, discuss tactics firms may use to enhance exposure, characteristics of attention, and why mark..

Describe three methods of comparing techniques to improve : Describe three methods of comparing techniques to improve the first swing electromechanical transient behaviour of such a generator.

Consumer behaviour concepts : Suppose that your friend Kenny has created a new product: Kenny’s environmentally friendly light bulbs. Using consumer behaviour concepts, advise Kenny, in how to develop a long-term advertising strategy to advertise his new brand and range of enviro..

User Account

All Pages