$3.$ Dog Up$!$ Franks is looking at a new sausage system with an installed cost of $$730,000.$ This cost will be depreciated straight$-$line to zero over the project$$s $7-$year life, at the end of which the sausage system can be scrapped for $$100,000.$ The sausage system will save the firm $$213,000$ per year in pretax operating costs, and the system requires an initial investment in net working capital of $$65,000.$

A$.$ What is the aftertax salvage value of the equipment?

B$.$ What is the annual operating cash flow?

C$.$ If the tax rate is $25$ percent and the discount rate is $11$ percent, what is the NPV of this project?