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Dog Up! Franks is looking at a new sausage system with an installed cost of $694,200. 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 $694,200. 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 $106,800. The sausage system will save the firm $213,600 per year in pretax operating costs, and the system requires an initial investment in net working capital of $49,840. If the tax rate is 21 percent and the discount rate is 14 percent, what is the NPV of this project? Multiple Choice $94,911.01 $56,472.27 $29,338.70 $71,166.32 $67,777.45
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