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board Font Paragraph 3 4 6 2 9. Dog Up! Franks is looking at a new sausage system with an installed cost of $803,400. This
board Font Paragraph 3 4 6 2 9. Dog Up! Franks is looking at a new sausage system with an installed cost of $803,400. This cost will be depreciated straight-line to zero over the project's 8-year life, at the end of which the sausage system can be scrapped for $123,600. The sausage system will save the firm $247,200 per year in pretax operating costs, and the system requires an initial investment in net working capital of $57,680. If the tax rate is 24 percent and the discount rate is 9 percent, what is the NPV of this project? a) $341,105.39 b) $369,837.75 c) $407,661.14 d) $388,248.70 e) $416,981.06 1 10
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