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4 Dog Up! Franks is looking at a new sausage system with an installed cost of $483,600. This cost will be depreciated straight-line to zero
4 Dog Up! Franks is looking at a new sausage system with an installed cost of $483,600. This cost will be depreciated straight-line to zero over the project's 6-year life, at the end of which the sausage system can be scrapped for $74,400. The sausage system will save the firm $148,800 per year in pretax operating costs, and the system requires an initial investment in net working capital of $34,720. 10 points If the tax rate is 24 percent and the discount rate is 13 percent, what is the NPV of this project? Multiple Choice $72,962.64 $57,665.27 $45,803.51 $27,760.17 $54,919.30
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