Your firm is contemplating the purchase of a new $500,000

Problem 10-16 Project Evaluation [LO1] Your firm is contemplating the purchase of a new $500,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $44,000 at the end of that time. You will save $147,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $69,000 (this is a one-time reduction). If the tax rate is 23 percent, what is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decima places, e.g. 32.16.) IRR Prev : 8 of 9 | Next >