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Your firm is contemplating the purchase of a new $595,00 computer based order entry system. The system will be depreciated straight line to zero over

Your firm is contemplating the purchase of a new $595,00 computer based order entry system. The system will be depreciated straight line to zero over its 5 year life. It will be worth $81,00 at the end of that time. You will save $184,000 before taxes per year in order processing costs, and be able to reduce working capital by $96,000 ( this is a one time reduction). If the tax rate is 24% what is the IRR for this project?

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