Alt’s is contemplating the purchase of a new $163,000 comput…

Alt’s is contemplating the purchase of a new $163,000 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 worthless at the end of five years. The company will save $40,750 before taxes per year in order processing costs and will reduce its net working capital by $16,000 immediately. 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?

A company purchased an asset for $2,750,000 that will be use…

A company purchased an asset for $2,750,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33 percent, 44.45 percent, and 14.81 percent, respectively. What is the book value of the equipment at the end of the project?