Dog Up! Franks is looking at a new sausage system with an installed cost of $639,600. 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 $98,400. The sausage system will save the firm $196,800 per year in pretax operating costs, and the system requires an initial investment in net working capital of $45,920.

If the tax rate is 23 percent and the discount rate is 15 percent, what is the NPV of this project?

Multiple Choice

$160,184.95

$213,482.91

$178,913.64

$187,859.32

$194,754.22