Dog Up! Franks is looking at a new sausage system with an installed cost of $374,400. This cost will be depreciated straight-line to zero over the project's 5-year life, at the end of which the sausage system can be scrapped for $57,600. The sausage system will save the firm $115,200 per year in pretax operating costs, and the system requires an initial investment in net working capital of $26,880.

If the tax rate is 25 percent and the discount rate is 10 percent, what is the NPV of this project?

Multiple Choice

• $24,087.51

• $13,897.87

• $50,911.31

• $40,721.67

• $42,757.76