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Dog Up! Franks is looking at a new sausage system with an installed cost of $842,400. This cost will be depreciated straight-line to zero over
Dog Up! Franks is looking at a new sausage system with an installed cost of $842,400. 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 $129,600. The sausage system will save the firm $259,200 per year in pretax operating costs, and the system requires an initial investment in net working capital of $60,480. Required: If the tax rate is 35 percent and the discount rate is 14 percent, what is the NPV of this project? $-136,728.02 O $-111,522.16 $-161,399.00 $-117,098.27 O $-86,851.17
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