Your firm is contemplating the purchase of a new $485,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $35,000 at the end of that time. You will save $140,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $60,000 (this is a one-time reduction). If the tax rate is 24 percent, what is the IRR for this project?

I have the following so far:

Annual depreciation charge = $485,000/5

Annual depreciation charge = $97,000

The aftertax salvage value of the equipment is:

Aftertax salvage value = $35,000(1 .24)

Aftertax salvage value = $26,600

Using the tax shield approach, the OCF is:

OCF = $140,000(1 .24) + .24($97,000)

OCF = $129,680

NPV = 0 = $485,000 + 60,000 + $129,680(PVIFA_IRR%,5) + [($26,600 60,000)/(1 + IRR)⁵]

IRR = 14.29%

**** I am not sure how to get to get to 14.29%. All I know is thats the correct answer. I need an explanation on what (PVIFA_IRR%,5) is and what it means/how to solve for it using a financial calculator. Please list the steps of the last 2 lines to find IRR as that is what I have a question about. Thank you!