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Need all calculations, steps and explanations, no excel solutions please Your firm is contemplating the purchase of a new $425,000 computer-based order entry system. The

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Need all calculations, steps and explanations, no excel solutions please

Your firm is contemplating the purchase of a new $425,000 computer-based order entry system. The PVCCATS is $91,209, and the machine will be worth $30,000 at the end of the five-year life of the system. You will save $130,000 before taxes per year in order processing costs and you will be able to reduce working capital by $60,000 (this is a onetime reduction and will be reclaimed at the end of the project). If the tax rate is 35 percent, what is the IRR for this project

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