Your firm is contemplating the purchase of a new $535,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $30,000 at the end of that time. You will save $165,000 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?
Input area:
Initial investment	$535,000
Pretax salvage value	$30,000
Cost savings per year	$165,000
Working capital reduction	$60,000
Tax rate	24%
Project and asset life	5