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Dog Up! Franks is looking at a new sausage system with an installed cost of $920,400. This cost will be depreciated straight-line to zero over
Dog Up! Franks is looking at a new sausage system with an installed cost of $920,400. This cost will be depreciated straight-line to zero over the project's 9-year life, at the end of which the sausage system can be scrapped for $141,600. The sausage system will save the firm $283,200 per year in pretax operating costs, and the system requires an Initial Investment in net working capital of $66,080. If the tax rate is 22 percent and the discount rate is 15 percent, what is the NPV of this project? Multiple Choice $225,078.35 $193,682.14 $272,374.29 $236,332.27 $240,978.08
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