Dog Up! Franks is looking at a new sausage system with an installed cost of $296,400. This cost will be depreciated straight-line to zero over the project's 10-year life, at the end of which the sausage system can be scrapped for $45,600. The sausage system will save the firm $91,200 per year in pretax operating costs, and the system requires an initial investment in net working capital of $21,280.

If the tax rate is 21 percent and the discount rate is 11 percent, what is the NPV of this project?

Multiple Choice

• $164,564.32

• $163,465.90

• $177,251.42

• $171,639.20

• $150,778.81