Question 2: Please use a spreadsheet. Thank you.

Your firm is contemplating the purchase of a new $650,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $125,000 at the end of that time. You will save $206,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $140,000 (this is a one-time reduction). If the tax rate is 25 percent, what is the IRR for this project?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)