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Omicron Industries is analyzing the purchase of a new $ 4 1 5 , 0 0 0 computer - krased order entry system. The system
Omicron Industries is analyzing the purchase of a new $ computerkrased order entry system. The system will be depreciated straightline to zero over its year life. It will be worth $ at the end of that time. You will save $ before taxes per year in order processing costs. You will be able to reduce Net Working Capital by $ at the beginning of the project. Net Working Capital will revert back to normal at the end of the project. If the tax rate is percent, what is the IRR for this project?
Note: The Net Working Capital is the opposite in this problem from the examples in class. Positive to start and negative at the end.
Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
IRR
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