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Your vice president of MIS informs you that she has researched the possibility of automating your organization's order system.She has projected that the new system

Your vice president of MIS informs you that she has researched the possibility of automating your organization's order system.She has projected that the new system will reduce labor costs by $25000 each year over the next five years. The purchase price (including installation and test) of the new system is $105250. The system is expected to have a useful life of five years,after which time it can be sold in the secondary computer systems market for $10250. What is the internal rate of return of this investment if the discount rate is 8.5% per year?

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