Dog Up

$!$

$$Franks is looking at a new sausage system with an installed cost of $

$7$

$2$

$0$

$,$

$0$

$0$

$0$

$.$

$$This cost will be depreciated straight

$-$

line to zero over the projects

$6$

$-$

year life, at the end of which the sausage system can be scrapped for $

$9$

$8$

$,$

$0$

$0$

$0$

$.$

$$The sausge system will save the firm $

$2$

$0$

$9$

$,$

$0$

$0$

$0$

$$per year in pretax operating costs, and the system requires an intial investment in net working capital of $

$6$

$1$

$,$

$0$

$0$

$0$

$.$

$$If the tax rate is

$2$

$3$

$$percent and the discount rate is

$9$

$$percent$,$ what is teh NPV of this project?