Your firm is contemplating the purchase of a new $720,000

computer-based order entry system. The system will be depreciated straight-line to

zero over its five-year life. It will be worth $75,000 at the end of that time. You

will save $260,000 before taxes per year in order processing costs, and you will be

able to reduce working capital by $110,000 (this is a one-time reduction). If the

tax rate is 35 percent, what is the IRR for this project? (Round off all answers to 4 decimal places)