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Dog Up! Franks is looking at a new sausage system with an installed cost of $171,600. 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 $171,600. This cost will be depreciated straight-line to zero over the project's 10-year life, at the end of which the sausage system can be scrapped for $26,400. The sausage system will save the firm $52,800 per year in pretax operating costs, and the system requires an Initial Investment in net working capital of $12,320. If the tax rate is 24 percent and the discount rate is 12 percent, what is the NPV of this project? Multiple Choice O $70,048.74 O $80,334.25 $78,402.03 O $76,508.81 O $84,862.10
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