Project Evaluation $[$LO$1]$ Your firm is contemplating the purchase of a new

$$580,000$ computer$-$based order entry system. The system will be depreciated

straight$-$line to zero over its five$-$year life. It will be worth $$60,000$ at the end of that

time. You will save $$210,000$ before taxes per year in order processing costs, and

you will be able to reduce working capital by $$75,000($this is a one$-$time reduc$-$

tion$).$ If the tax rate is $35$ percent, what is the IRR for this project?