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Dog Up ! Franks is looking at a new sausage system with an installed cost of $ 2 9 0 , 0 0 0 .

Dog Up! Franks is looking at a new sausage system with an installed cost of $290,000. This cost will be depreciated straight-line to zero over the project's 4-year life, at the end of which the sausage system can be scrapped for $90,000. The sausage system will save the firm $205,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $20,000. If the tax rate is 32 percent and the discount rate is 9.9 percent, what is the NPV of this project?

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