Calculated according to five-year macrs

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Reference no: EM131556107

"An industrial engineer is tasked with determining if a RFID Fixed-Asset Tracking System is a good investment. The cost of equipment and installation is $67,000. The project life is 6 years. The salvage value will be $19,000. The project requires a $25,000 immediate investment in working capital which is fully recoverable at the end of 6 years. The annual savings on labor and materials will be $55,000, and the annual expenses will be $16,000. Depreciation is calculated according to 5-year MACRS, and the firm's tax rate is 42%. What is the IRR of the project? Express your answer as a percentage."

Reference no: EM131556107

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