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 $$165$ before taxes per year in order processing costs, and you will be able to reduce working capital by $$60,000($this is a one$-$t$)$ reduction$).$ If the tax rate is $24$ percent, what is the IRR for this project?

function to answer this question. Taxes on the salvage value should be negative for a tax liability and positive for a tax credit.$)$

Output area:

Aftertax salvage value

Sell equipment

Taxes

Aftertax cash flow

Costs

Depreciation

EBT

Taxes

Net income

OCF

Capital spending

Net working capital

Total cash flow

IRR

Year $0$

Year $1$