Question
Dog Up! Franks is looking at a new sausage system with an installed cost of $625,843. This cost will be depreciated straight-line to 25,699 over
Dog Up! Franks is looking at a new sausage system with an installed cost of $625,843. This cost will be depreciated straight-line to 25,699 over the project's 7-year life, at the end of which the sausage system can be scrapped for $88,936. The sausage system will save the firm $170,492 per year in pretax operating costs, and the system requires an initial investment in net working capital of $58,739. If the tax rate is 0.36 and the discount rate is 0.12, what is the total cash flow in year 7? (Make sure you enter the number with the appropriate +/- sign)
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