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Dog Up ! Franks is looking at a new sausage system with an installed cost of $ 7 1 5 , 0 0 0 .

Dog Up! Franks is looking at a new sausage system with an installed cost of $715,000. 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 $97,000. The sausage system will save the firm $207,000 per year in
pretax operating costs, and the system requires an initial investment in net working capital of
$59,000.
What is the aftertax salvage value of the equipment?
Note: Do not round intermediate calculations and round your answer to the nearest whole
number, e.g.,32.
Answer is complete but not entirely correct.
What is the annual operating cash flow?
Note: Do not round intermediate calculations and round your answer to the nearest whole
number, e.g.,32.
Answer is complete but not entirely correct.
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