Question
Dog Up! Franks is looking at a new sausage system with an installed cost of $815,634. This cost will be depreciated straight-line to 48,609 over
Dog Up! Franks is looking at a new sausage system with an installed cost of $815,634. This cost will be depreciated straight-line to 48,609 over the project's 7-year life, at the end of which the sausage system can be scrapped for $104,875. The sausage system will save the firm $241,263 per year in pretax operating costs, and the system requires an initial investment in net working capital of $64,094. If the tax rate is 0.29 and the discount rate is 0.13, what is the total cash flow in year 7? (Make sure you enter the number with the appropriate +/- sign)
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