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 5-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 22 percent and the discount rate is 15 percent, what is the NPV of this project?

Multiple Choice

• $-24,923.71

• $-14,223.63

• $3,459.95

• $-7,240.13

• $-7,602.13