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Dog Up ! Franks is looking at a new sausage system with an installed cost of $ 7 5 5 , 0 0 0 .

Dog Up! Franks is looking at a new sausage system with an installed cost of $755,000. This cost will be depreciated straight-
line to zero over the project's 7-year life, at the end of which the sausage system can be scrapped for $105,000. The sausage
system will save the firm $223,000 per year in pretax operating costs, and the system requires an initial investment in net
working capital of $75,000.
What is the aftertax salvage value of the equipment?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g.,32.
Aftertax salvage value
What is the annual operating cash flow?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g.,32.
OCF
If the tax rate is 25 percent and the discount rate is 8 percent, what is the NPV of this project?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.
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