Dog Up! Franks is looking at a new sausage system with an installed cost of $257,400. This cost will be depreciated straight-line to zero over the project's 3-year life, at the end of which the sausage system can be scrapped for $39,600. The sausage system will save the firm $79,200 per year in pretax operating costs, and the system requires an initial investment in net working capital of $18,480. Required: If the tax rate is 34 percent and the discount rate is 15 percent, what is the NPV of this project?

$-54,260.17

$-63,618.73

$-77,774.11

$-60,589.27

$-71,445.01