Hw question on IRR, Corporate Finance

Assignment Help:
Your firm is contemplating the purchase of a new $791,000 computer-based order entry system. The system will be depreciated straight-line to zero over its seven-year life. It will be worth $57,000 at the end of that time. You will save $177,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $52,000 at the beginning of the project. Working capital will revert back to normal at the end of the project.

If the tax rate is 40 percent, what is the IRR for this project?

Related Discussions:- Hw question on IRR

Mergers had on fees assessed for retail bank services?, What effects have m...

What effects have mergers had on fees assessed for retail bank services? A: The impact is not clear. Market conditions and the level of competition often determine the cost for

WACC, The cost of capital for a firm can differ from the cost of capital fo...

The cost of capital for a firm can differ from the cost of capital for each of its businesses. When a firm has multiple businesses, it is important to use the cost of capital appro

Financial Analysis, Prepare a portfolio of analytical reference materials i...

Prepare a portfolio of analytical reference materials including the financial reports for at least five years. This is your analytical permanent file for the chosen company. (ii) M

What are "in-market" mergers, What are "in-market" mergers? A: An in-ma...

What are "in-market" mergers? A: An in-market merger is one that takes place between two banks operating in the same geographic area, typically a city or metropolitan area. The

Financial Engineering Assignment, Dear Sir/Madam, I have an assignment for...

Dear Sir/Madam, I have an assignment for my financial engineering class, which contains 19 different questions, and is due Monday 11 a.m. Can you please tell me if you have someon

Methodology of an event study, Methodology of an Event Study In this s...

Methodology of an Event Study In this section we outline the methodology of an event study. In suc- ceeding sections we apply the methodology to a number of different cases. A

Hybrid paying method taxation and raising cash , Finance There are var...

Finance There are various ways of making a payment for M&A. Cash, stock-swap and combination of both. The hybrid paying method is commonly used method for most of organisations

Capital budgeting and the cost of capital, Roman Roads has a number of capi...

Roman Roads has a number of capital projects available for investment this year but has access to a limited amount of capital.  Specifically, the firm has arranged to secure a $25

Assignment for corporate finance, Assignment Part 1   Sha...

Assignment Part 1   Shareholder Value Provide (a) one page write-up of the company; (b) Present its significant performance indicators such as P/BV; an

Stocks, The stock price of Jenkins Co. is $53. Investors require a 12 perce...

The stock price of Jenkins Co. is $53. Investors require a 12 percent rate of return on similar stocks. If the company plans to pay a dividend of $3.15 next year, what growth rate

Write Your Message!

Captcha
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