Dog Up! Franks is looking at a new sausage system with an installed cost of $717,600. This cost will be depreciated straight-line to zero over the project's 4-year life, at the end of which the sausage system can be scrapped for $110,400. The sausage system will save the firm $220,800 per year in pretax operating costs, and the system requires an initial investment in net working capital of $51,520.

If the tax rate is 22 percent and the discount rate is 13 percent, what is the NPV of this project?

Multiple Choice

• $-87,928.22

• $-107,850.04

• $-55,035.93

• $-57,787.73

• $-35,114.11