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Dog Up! Franks is looking at a new sausage system with an installed cost of $546,000. This cost will be depreciated straight-line to zero over

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Dog Up! Franks is looking at a new sausage system with an installed cost of $546,000. This cost will be depreciated straight-line to zero over the project's 7-year life, at the end of which the sausage system can be scrapped for $84,000. The sausage system will save the firm $168,000 per year in pretax operating costs, and the system requires an Initial Investment in net working capital of $39,200. If the tax rate is 22 percent and the discount rate is 12 percent, what is the NPV of this project? Multiple Choice $130,348.72 $159,986 64 $145,444.67 CIOR RRORI

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