Assignment

Project Evaluation. Kolby?s Korndogs is looking at a new sausage system with an installed cost of $735,000. This cost will be depreciated straight-line to zero over the project?s 5 year life, at the end of which the sausage system can be scrapped for $105,000. The sausage system will save the firm $204,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $35,000. If the tax rate is 34%, and the discount rate is 8%, what is the NPV of this project?

Need help with calculations and entering into excel template attached.