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Dog Up ! Franks is looking at a new sausage system with an installed cost of $ 9 1 2 , 6 0 0 .

Dog Up! Franks is looking at a new sausage system with an installed cost of $912,600. This cost will be depreciated straight-line to zero over the project's 5-year life, at the end of which the sausage system can be scrapped for $140,400. The sausage system will save the firm $280,800 per year in pretax operating costs, and the system requires an initial investment in net working capital of $65,520. If the tax rate is 21 percent and the discount rate is 8 percent, what is the NPV of this project?

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