7. A) Your firm is contemplating the purchase of a new $500,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worthless at the end of that time. You will save $150,000 before taxes per year in order processing costs, and you will be able to reduce networking capital by $80,000. If the tax rate is 30 percent, what is the IRR for this project? B) In the previous problem you used straight line depreciation. This time use the MACRS 3 - depreciation schedule and answer the question again. The project is still 5 years long Open Word 29