Computer-based order entry system

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Reference no: EM13730401

Your firm is contemplating the purchase of a new $620,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $68,000 at the end of that time. You will save $250,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $83,000 (this is a one-time reduction). If the tax rate is 34 percent, what is the IRR for this project? (Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM13730401

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