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Fox Hollow Franks is looking at a new system with an installed cost of $540,000. This equipment is depreciated at a rate of 20 percent
Fox Hollow Franks is looking at a new system with an installed cost of $540,000. This equipment is depreciated at a rate of 20 percent per year (Class 8) over the project's five-year life, at the end of which the sausage system can be sold for $80,000. The sausage system will save the firm $170,000 per year in pre- tax operating costs, and the system requires an initial investment in net working capital of $29,000. If the tax intermediate calculations. Round the final answer to 2 decimal places.) NPV
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