YOUR FIRM IS CONTEMPLATING THE PURCHASE OF A NEW $580,000 COMPUTER

your firm is contemplating the purchase of a new $580,000 computer based order entry system. the system will be depreciated straight line to zero over its five year life. it will be worth $60,000 at the end of that time. you will save $210,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $75,000 (one time reduction). if the tax rate is 35%, what is the IRR for this project?

Thanks for installing the Bottom of every post plugin by Corey Salzano. Contact me if you need custom WordPress plugins or website design.

CategoriesUncategorized