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A firm is considering purchasing a computer system. -Cost of system is $113,000. The firm will pay for the computer system in year 0. -Project

A firm is considering purchasing a computer system. -Cost of system is $113,000. The firm will pay for the computer system in year 0. -Project life: 4 years -Salvage value in year 0 (constant) dollars: $16,000 -Depreciation method: five-years MACRS -Marginal income-tax rate = 38% (remains constant over time) -Annual revenue = $129,000 (year-0 constant dollars) -Annual expenses (not including depreciation) = $93,000 (year-0 constant dollars) If the general inflation rate is 2.3% during the project period (which will affect all revenues, expenses, and the salvage value but not depreciation), determine the INFLATION-FREE IRR' of the computer system. Enter your answer as a percentage between 0 and 100.

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