Your firm is contemplating the purchase of a new $1,628,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. You will save $642,500 before taxes per year in order processing costs and you will be able to reduce working capital by $115,764 (this is a one-time reduction at time 0). The net working capital will return to its original level when the project ends. You expect to sell the system for $15,300 at the end of the 5-years. The tax rate is 35 percent. What is the projects internal rate of return (IRR)?

A. 11.78 percent

B. 21.07 percent

C. 13.49 percent

D. 18.21 percent

E. 23.58 percent