Question
Dog Up! Franks is looking at a new sausage system with an installed cost of $643,748. This cost will be depreciated straight-line to 56,746 over
Dog Up! Franks is looking at a new sausage system with an installed cost of $643,748. This cost will be depreciated straight-line to 56,746 over the project's 7-year life, at the end of which the sausage system can be scrapped for $100,419. The sausage system will save the firm $178,716 per year in pretax operating costs, and the system requires an initial investment in net working capital of $66,966. If the tax rate is 0.33 and the discount rate is 0.09, what is the total cash flow in year 7? (Make sure you enter the number with the appropriate +/- sign)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started