Dog Up! Franks is looking at a new sausage system with an installed cost of $694,200. 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 $106,800. The sausage system will save the firm $213,600 per year in pretax operating costs, and the system requires an initial investment in net working capital of $49,840.

If the tax rate is 21 percent and the discount rate is 12 percent, what is the NPV of this project?

Multiple Choice

• $351,733.19

• $307,818.46

• $334,983.99

• $368,776.84

• $341,611.32