### Computer-based order entry system

Assignment Help Financial Management
##### Reference no: EM13766338

Your firm is contemplating the purchase of a new \$575,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth \$59,000 at the end of that time. You will save \$265,000 before taxes per year in order processing costs, and you will be able to reduce working capital by \$74,000 (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))

### Previous Q& A

#### Mcdonald global strategy

Generally speaking, many companies are interested in the potential cost savings of using the same product and promotional mix on a global basis.

#### Arithmetic returns and risk-premium of stocks

Calculate expected return, variance and standard deviation for individual stocks and portfolios and describing the key points of portfolio theory.

#### Prepare a paper on the drug trade

Prepare a paper on the topic of "The Drug Trade" As a minimum, your paper should analyze, describe, and  critique: the participants, victims, causes, geographic region(s) affected

#### Common network for all onboard systems

This module item is similar to the previous case study. You need to analyze and study the subject presented below and compose a report answering the questions posed.

#### Coupon rate-what is the current bond price

Ninja Co. issued 12-year bonds a year ago at a coupon rate of 8.4 percent. The bonds make semi-annual payments. If the YTM on these bonds is 6.7 percent, what is the current bond price?

#### How does a court evaluate whether a contract exists

How does a court evaluate whether a contract exists if it is an oral agreement, particularly when the parties disagree about the terms

#### Explain how your aims could be achieved with this ring

Explain how your aims could be achieved with this ring, but couldn't otherwise. The more honest everyone is, the more interesting this discussion will be.

#### What is the expected value of this stock

Klaus Toys just paid its annual dividend of \$1.40. The required return is 16 percent and the dividend growth rate is 2 percent. What is the expected value of this stock five years from now?

#### Compare and contrast ipx and netbios

Write a paper in which you compare and contrast TCP/IP, IPX, and NETBIOS & NETBEUI, providing examples of each.

### Similar Q& A

#### What is the required return on franc flows

You are evaluating a proposed expansion of an existing subsidiary located in Switzerland. The cost of the expansion would be SF 21 million. The cash flows from the project would be SF 5.9 million per year for the next five years. The dollar required ..

#### What is the difference between pro forma financial statement

What is the difference between pro forma financial statements and a cash budget?  Explain why pro forma financial statements are not used to forecast cash needs.

#### Sufficient revenues to generate tax shield from depreciation

Piliot plus pens is deciding when to replace its old machine. The machine's current salvage value is \$2.34 million. Its current book value is \$1.43 million. If not sold, the old machine will require maintenance costs of \$975,000 at the end of the yea..

#### What is his after-tax yield on the bonds

John Friedman is in the 40 percent personal tax bracket. He is considering investing in HCA bonds that carry a 12 percent interest rate. What is his after-tax yield (interest rate) on the bonds?

#### Explain what kinds of real estate investment vehicles exist

Despite the crash of 2008 and 2009, real estate remains a solid investment over time. Why might this be the case? What is it about real estate that makes it a good investment? What kinds of real estate investment vehicles exist

#### What is the length of prestopinos cash conversion cycle

Pretopino Corporation produces motorcycle batteries. Pretopino turns out 1,500 batteries a day at a cost of \$6 per battery for materials and labor. It takes the firm 22 days to convert raw materials into a battery. Prestopino allows its customers 40 ..

#### Examine the criticality of timely information

Examine strategies for decision-making based on quantitative models and examine the criticality of timely information.

Lakonishok Equipment has an investment opportunity in Europe. The project costs €12 million and is expected to produce cash flows of €1.8 million in Year 1, €2.6 million in Year 2, and €3.5 million in Year 3. The current spot exchange rate is \$1.36/€..

#### Interest versus dividend income during the year just ended

Interest versus dividend income During the year just ended

#### Arbitrage strategy that yields a risk-less profit

Suppose the forward rate satisfies f(0, T1, T2) > [B(0,T1) / B(0,T2)] - 1. Write down, showing all details, an arbitrage strategy that yields a risk-less profit of (1 + f(0, T1, T2)) - B(0,T1) / B(0,T2) dollars.

#### Required return equal to the expected return

A stock is trading at \$55 per share. The stock is expected to have a year-end dividend of \$2 per share and expected to grow at same constant rate g throughout time. The stocks required rate of return is 16 %( assume the market is in equilibrium with ..

#### Find labor rate variance and the labor efficiency variance

Compute the materials price variance and the materials quantity variance and compute the labor rate variance and the labor efficiency variance.