Dog Up! Franks is looking at a new sausage system with an installed cost of $475,800. This cost will be depreciated straight-line to zero over the project's 4-year life, at the end of which the sausage system can be scrapped for $73,200. The sausage system will save the firm $146,400 per year in pretax operating costs, and the system requires an initial investment in net working capital of $34,160.

If the tax rate is 22 percent and the discount rate is 13 percent, what is the NPV of this project?

Multiple Choice

• $-36,491.22

• $-71,509.26

• $-58,300.23

• $-23,282.18

• $-38,315.78