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Business, 15.07.2020 02:01 justinchou814

Your firm is contemplating the purchase of a new $485,000 computer based order entry system. The system will depreciate straight line to zero over its five year life. It will be worth $35,000 at the end of that time. You will save $140,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $60,000(on time. If the tax rate is 24%, what is the IRR for this project?

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Your firm is contemplating the purchase of a new $485,000 computer based order entry system. The sys...
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