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Dog Up! Franks is looking at a new sausage system with an installed cost of $834,600. 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 $834,600. 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 $128,400. The sausage system will save the firm $256,800 per year in pretax operating costs, and the system requires an initial investment in net working capital of $59,920. Required: If the tax rate is 34 percent and the discount rate is 9 percent, what is the NPV of this project?
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