Dog Up! Franks is looking at a new sausage system with an installed cost of $530400. This cost will be depreciated straight line to zero over the projects 4-year life, at the end of which the sausage system can be scrapped for $81600. The sausage system will save the firm $163200 per year in pretax operating costs, and the system requires an initial investment in net working capital of $38080. If the tax rate is 22 percent and the discount rate is 12 percent, what is the NPV of this project?

Dog Up! Franks is looking at a new sausage system with an installed cost of $530,400. 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 $81,600. The sausage system will save the firm $163,200 per year in pretax operating costs, and the system requires an initial investment in net working capital of $38,080. If the tax rate is 22 percent and the discount rate is 12 percent, what is the NPV of this project? Multiple Choice $.55.15202 $-28.582.04 $-14.702.57 o $-55,152.02 o $-28,582.04 o $-14,70257 o $-69,031.49 o $-30,011.14