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 6-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 10 percent, what is the NPV of this project?

Multiple Choice

• $92,123.54

• $144,636.01

• $128,051.18

• $134,453.74

• $108,708.38