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Dog Up! Franks is looking at a new sausage system with an installed cost of $624,000. 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 $624,000. This cost will be depreciated straight-line to zero over the project's 8-year life, at the end of which the sausage system can be scrapped for $96,000. The sausage system will save the firm $192,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $44,800. |
If the tax rate is 24 percent and the discount rate is 15 percent, what is the NPV of this project?
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