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 $$30,000$ at the end of that time. You will save $$165,000$

before taxes per year in order processing costs, and you will be able to reduce working capital by $$60,000($this is a one$-$time

reduction$).$ If the tax rate is $24$ percent, what is the IRR for this project?

Input area:

$($Use cells A$6$ to B$11$ from the given information to complete this question. You must use the built$-$in Excel

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

positive for a tax credit.$)$

Aftertax salvage value

Sell equipment

Please type out excel formula to solve.Thanks!

Taxes

Aftertax cash flow

Costs

Depreciation

EBT

Taxes

Net income