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Project Evaluation [LUT PUU is contemplating the purchase of a new straight-line to zero over its five-year life. It will be worth $75,000 at the
Project Evaluation [LUT PUU is contemplating the purchase of a new straight-line to zero over its five-year life. It will be worth $75,000 at the end of that time. You will save $260,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $110,000 (this is a one-time reduction) . If the tax rate is 35 percent, what is the IRR for this project? $720,000 computer-based order entry system. The system will be depreciated
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