Dog Up! Franks is looking at a new sausage system with an installed cost of $787,800. This cost will be depreciated straight-line to zero over the project's 7-year life, at the end of which the sausage system can be scrapped for $121,200. The sausage system will save the firm $242,400 per year in pretax operating costs, and the system requires an initial investment in net working capital of $56,560.

If the tax rate is 24 percent and the discount rate is 9 percent, what is the NPV of this project?

Multiple Choice

• $315,105.92

• $249,712.45

• $325,720.62

• $275,332.20

• $300,100.87