Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dog Up ! Franks is looking at a new sausage system with an installed cost of $ 8 6 9 , 5 7 4 .

Dog Up! Franks is looking at a new sausage system with an installed cost of $869,574. This cost will be depreciated straight-line to 72,955 over the project's 7-year life, at the end of which the sausage system can be scrapped for $82,662. The sausage system will save the firm $215,076 per year in pretax operating costs, and the system requires an initial investment in net working capital of $43,062. If the tax rate is 0.26 and the discount rate is 0.1, what is the total cash flow in year 7?(Make sure you enter the number with the appropriate +/- sign)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance And Democracy Towards A Sustainable Financial System

Authors: Alessandro Vercelli

1st Edition

3030279111, 978-3030279110

More Books

Students also viewed these Finance questions