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Dog Up! Franks is looking at a new sausage system with an installed cost of $452,400. 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 $452,400. This cost will be depreciated straight-line to zero over the project's 9-year life, at the end of which the sausage system can be scrapped for $69,600. The sausage system will save the firm $139,200 per year in pretax operating costs, and the system requires an initial investment in net working capital of $32,480. If the tax rate is 23 percent and the discount rate is 11 percent, what is the NPV of this project? Multiple Choice $205,098.55 O $206,266.23 $226,049.00 $185,315.79 O $216,579.54
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