Your firm is contemplating the purchase of a new $688,800 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $61,500 at the end of that time. You will save $270,600 before taxes per year in order processing costs and you will be able to reduce working capital by $11,806 (this is a one-time reduction).

Required :

If the tax rate is 35 percent, what is the IRR for this project? (Do not round your intermediate calculations.)

rev: 09_18_2012

	19.49%
	20.30%
	19.22%
	21.32%
	19.39%