Dog Up! Franks is looking at a new sausage system with an installed cost of $335,400. This cost will be depreciated straight-line to zero over the project's 8-year life, at the end of which the sausage system can be scrapped for $51,600. The sausage system will save the firm $103,200 per year in pretax operating costs, and the system requires an initial investment in net working capital of $24,080.

If the tax rate is 24 percent and the discount rate is 12 percent, what is the NPV of this project?

Multiple Choice

• $105,690.51

• $89,851.82

• $104,206.31

• $120,045.00

• $110,975.03