What is the irr for this project

Assignment Help Finance Basics
Reference no: EM13263894

Your firm is thinking about the purchase of a new $630,000 mobile-compatible order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $70,000 at the end of that time. You will save $260,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $85,000 (this is a one-time reduction). If the tax rate is 30 percent, what is the IRR for this project.

Reference no: EM13263894

Questions Cloud

What is the effective annual interest rate : Maltz Landscaping has an average collection period of 33 days for its accounts receivable. Currently, Maltz factors all of its receivables at a 5 percent discount. What is the effective annual interest rate on the financing from the factor?
What are the savings from the lockbox : Rosenthal Design has daily sales of $37,909. The financial management team determined that a lockbox would reduce the collection time by 1.3 days. Assuming the company can earn 7.1 percent interest per year, what are the savings from the lockbox?
A large energy company provides a call centre to answer cust : A large energy company provides a call centre to answer customers’ queries. The call centre management is keen to understand the activity and performance levels that the call centre has experienced over the last winter and what they might do to impro..
Design a synchronous 2-bit binary up-counter : Design a synchronous 2-bit, binary, up-counter using the following specification: The counter has five inputs ( not including the clock) and three outputs. The inputs are CLR ("Clear"), LOAD, COUNT, LB and LA.
What is the irr for this project : You will save $260,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $85,000 (this is a one-time reduction). If the tax rate is 30 percent, what is the IRR for this project.
What is the shortest distance between the towers : Radio station KBOB broadcasts at a frequency of 85.7 MHz on your dial using a radio waves that travel at 3.00X10^8 m/s. What's the shortest distance between the towers
Discuss the recent privacy issues that challenged facebook : Discuss the recent privacy issues that challenged Facebook. Will privacy restrictions limit its ability to offer personal marketing opportunities?
How to find the voltage in the capacitor vc : if we have a circuit with R= 5, L=22mH, C=22nF , Vs=10 and the switch S was opens for a long time and it closes at time t=0 second. all connected in series, how can i find the voltage in the capacitor Vc
What is the relationship between discounting and compounding : List at least two actions that Emily and Paul could take to accumulate more of their retirement (think about i and n).

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the incremental costs associated with producing

Suppose this action will increase sales to 300,000 jars of sauce. What is the incremental costs associated with producing an extra 72,500 jars of sauce?

  Integrating strategic planning-internal control conce

What are some methodologies and tools used in the analysis of potential risk factors in a teaching hospital, a primary care physician's office, and a public health facility?

  Finance details of foreign project

A foreign project that is profitable when valued on its own will always be profitable from the parent firm's standpoint. True or false? Explain.

  Quantitative limitations of financial statements

What are the qualitative and quantitative limitations of financial statements? What is the FASB and what role does that entity play? Have you heard of and do you know the meaning of IFAS and GAAP?

  Interest rate risk and bond pricing

Two years ago your corporate treasurer purchased for the firm a 20-year bond at its par value of $1,000. The coupon rate on this security is 8 percent. What will be the amount of your gain or loss over the original purchase price? What do we call t..

  Which manager has the better risk adjusted return

Manager B shows a return of 12% with a standard deviation of 6%. If the risk free rate is 5% which manager has the better risk adjusted return?

  Compensation expense for the year

Karl Stick is president of Stock Corporation. He also owns 100% of its stock. Karl's salary is $120,000. At the end of the year, Karl was paid a bonus of $100,000 because the firm had a good year.

  Calculate the money received by the company

Invester banker five enters into a best efforts arrangement to try and sell ten million shares of stock at $15.00 per share for Rogers Company. The investment banker five incurs expenses of $300,000 in floating the issue and the company incurs expens..

  Retirement planning case

THE CASE - LEONARD AND ROSE DOMINO,  Retirement Planning Case assignment.  You must clearly state assumptions in your final report in your final report to the clients.   Use generic rates throughout your analysis and refer to the OMERS defined ben..

  What is the current value of a share of common stock

Assume the investor has a required rate of return of 15 percent and expects to sell the security in 5 years for $72.

  Explain using modigliani-miller framework determining market

Explain Using Modigliani-miller framework determining market value and what is the market value of the unlevered firm U

  Calculate john''s insurance need using the capital retention

a. Calculate John's insurance need using the capital retention approach, an after-tax discount rate of 5.5%, and assume end-of period payment of benefits. b. Calculate John's insurance need using the human life value approach (HLV), an after-tax disc..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd