Question
Dog Up! Franks is looking at a new sausage system with an installed cost of $468,000. 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 $468,000. This cost will be depreciated straight-line to zero over the project's 5-year life, at the end of which the sausage system can be scrapped for $72,000. The sausage system will save the firm $144,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $33,600. If the tax rate is 21 percent and the discount rate is 13 percent, what is the NPV of this project? Multiple Choice $17,602.04 $16,763.84 $32,127.11 $-14,108.34 $1,254.93
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