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Dog Up ! Franks is looking at a new sausage system with an installed cost of $ 9 8 7 , 7 1 5 .

Dog Up! Franks is looking at a new sausage system with an installed cost of $987,715. This cost will be depreciated straight-line to 73,644 over the project's 7-year life, at the end of which the sausage system can be scrapped for $138,975. The sausage system will save the firm $246,239 per year in pretax operating costs, and the system requires an initial investment in net working capital of $43,264. If the tax rate is 0.21 and the discount rate is 0.13, what is the total cash flow in year 7?

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