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Your firm is contemplating the purchase of a new $ 4 8 5 , 0 0 0 computer - based order entry system. The system
Your firm is contemplating the purchase of a new $ computerbased order entry system. The system will be depreciated straightline to zero over its fiveyear life. It will be worth $ at the end of that time. You will save $ before taxes per year in order processing costs, and you will be able to reduce working capital by $this is a onetime reduction If the tax rate is percent, what is the IRR for this project? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, egDog Up Franks is looking at a new sausage system with an installed cost of $ This cost will be depreciated straightline to zero over the projects fiveyear life, at the end of which the sausage system can be scrapped for $ The sausage system will save the firm $ per year in pretax operating costs, and the system requires an initial investment in net working capital of $ If the tax rate is percent and the discount rate is percent, what is the NPV of this project? Do not round intermediate calculations and round your answer to decimal places, eg
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