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  3. your firm is contemplating the purchase of a new $

Your firm is contemplating the purchase of a new $635,000 computer-based order entry...

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Accounting

Your firm is contemplating the purchase of a new $635,000
computer-based order entry system. The system will be depreciated
straight-line to zero over its 5-year life. It will be worth
$113,000 at the end of that time. You will save $200,000 before
taxes per year in order processing costs, and you will be able to
reduce working capital by $128,000(this is a one-time reduction).
If the tax rate is 22 percent, what is the IRR for this project?
(Do not round intermediate calculations and enter your answer as a
percent rounded to 2 decimal places, e.g.,32.16.)

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