Question
give the detailed answer please. your firm is contemplating the purchase of a new $791,000 computer based order entry system. the system will be depreciated
give the detailed answer please.
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 it's seven year life.It will be worth of $57000 at the end of that time . You will save $177000 before taxes per year in order processing costs, and you will be able to reduce working capital by $52000 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% what is the IRR for this project?
I have written the whole question just in case I have missed some information in the picture.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started