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Your firm is contemplating the purchase of a new $650,000 computer-based order entry system. the system will be depreciated straight-line to zero over its five-year

Your firm is contemplating the purchase of a new $650,000 computer-based order entry system. the system will be depreciated straight-line to zero over its five-year life. it will be worth $60,000 at the end of that time. you will save $230,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $95,000 (this is a one-time reduction). if the tax rate is 35 percent, what is the IRR for this project?

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