Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. can you solve part 3 and 4 with the explanation? t

can you solve part 3 and 4 with the explanation? thank you! ...

80.2K

Verified Solution

Question

Finance

can you solve part 3 and 4 with the explanation? thank you! image
7. Alt's is contemplating the purchase of a new $218,000 computer-based order entry system. The system will be depreciated straight-line to zero over the system's five-year life. The system will be worth $20,000 at the end of five years. The company will save $73,500 before taxes per year and will reduce working capital by $15,800 at the beginning of the project. The net working capital will return to its original level when the project ends. The tax rate is 21 percent. What is the internal rate of return for this project? 1 2180000=436 1) What is the depreciation each year? 2) What is the amount of OCF each year?$ 7.221 3) What is the total cash inflow/outflow each year? 4) What is the IRR for this project? $43,600

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

In this week's Population Demographics Lab activity, what pattern(s) of suvivorship (i.e., what types of...

Algebra
1.2K views

What is the range of the function f(x)=2 x-2Select one: a. [1.5] b. (-?,0)c. (-?,?)...

Basic Math
1.2K views

Solve the following given differential equations by using the following method: method of variations of parameters. 1....

Chemistry
1.2K views

Show that the following are eigenfunctions of the Laplacian operator and determine the eigenvalues: a. (r^-1)sinkr b.(...

Biology
1.2K views

5 Transgenic Bt crops have been genetically modified to a b C d e resist...

Physics
1.2K views

onem Now for second order minima 0 lution a 2 Equating by 0 10 3...

Geometry
1.2K views

A ship leaves port and travels 85 miles into the sea at an angle of...

Geometry
1.2K views

x If ALMN A XYZ which sta X A NL ZX

Calculus
1.2K views

The electric current i in A as a function of the time t in s...

Accounting
1.2K views

dix 1 debits of Ex 422) Adjustment data on...

Accounting
1.2K views

Exercise 4-13 (Static) Inferring Costing Method; Unit Product Cost [LO4-1 Sierra Company Incurs the following...

Accounting
1.2K views

Required information CP6-3 (Algo) Recording Cash Sales, Credit Sales, Estimated and Actual Sales Returns, and...