Dog Up! Is looking at a new hot dog system, with an installed cost of $290,000. This will be depreciated over a 5 year life at which time the system can be scrapped for $60,000. The system will save the company $120,000 per year in pretax operating costs, and there is an intial working capital investment of $28,000. Tax rate is 34% and the firms discount rate is 10%. What is the annual OCF? answer without using Excel

	Installation cost
	Operating cost per year
	Initial NWC
	Pretax salvage value
	Tax rate
	Discount rate
	*Depreciation straight-line
	over life
	Output area:
	Annual depreciation charge
	Aftertax salvage value
	OCF
	NPV