Your firm is contemplating the purchase of a new 580000

Reference no: EM13621497

Your firm is contemplating the purchase of a new $580,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $60,000 at the end of that time. You will save $210,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $75,000 (this is a one-time reduction). If the tax rate is 35 percent, what is the IRR for this project?

Reference no: EM13621497

Questions Cloud

What is the difference in the period s between a location : a simple pendulum has a period t2.93218 s in a location where g 9.80000 ms2. a what is its length m?b what would be

You purchases a zero coupon bond one yr ago for 28083 the : you purchases a zero coupon bond one yr ago for 280.83. the market interest rate is now 9 percent. if the bond had 15

Barna research group collected data showing church : barna research group collected data showing church attendance by age group usa today november 20 2003. use the sample

In rl ac curcuitwhen the applied voltage is equal to 450 v : in rl ac curcuit.when the applied voltage is equal to 4.50 v the current also has a non-zero value. when the applied

Your firm is contemplating the purchase of a new 580000 : your firm is contemplating the purchase of a new 580000 computer-based order entry system. the system will be

The operator of a large production plant would like to : the operator of a large production plant would like to estimate the mean amount of time a worker takes to assemble a

Consider the economic outlook for the next year in order : consider the economic outlook for the next year in order to recommend the ideal portfolio to maximize the rate of

There seems to be evidence that the patients taking the : suppose a group of 900 smokers who all wanted to give up smoking were randomly assigned to receive an antidepressant

At the 100 significance level can the manufacturer conclude : the manufacturer of an mp3 player wanted to know whether a 10 percent reduction in price is enough to increase the

User Account

All Pages