Dog Up! Franks is looking at a new sausage system with an installed cost of $385,000. This cost will be depreciated straight-line to zero over the projects five-year life, at the end of which the sausage system can be scrapped for $60,000. The sausage system will save the firm $135,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $35,000. If the tax rate is 21 percent and the discount rate is 10 percent, what is the NPV of this project? ATSV = 47,400 CF 0 = -420000 (-385,000-35,000) OCF yr 1-4 = 122,820 CF yr 5 = 205,220 (122,820+35,00+47,400) NPV= 96,748.348

this is the question -

NOW - In the previous problem, suppose the fixed asset actually qualifies for 100% bonus depreciation. All the other facts remain the same. What is the after tax salvage value of the of the asset?

Would this just be the initial cost of the equipment - initial cost of equipment * Tax? please clarify, thanks!