your firm is contemplating the purchase of a new $595,000 computer-based order entry system. the system will be depreciated straight-line to zero over its five-year life. it will be worth $63,000 at the end of that time. you will save $225,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $78,000 (this is a one-time reduction). if the tax rate is 23 percent, what is the irr for this project?
