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Frank is looking at a new sausage system with an install cost of 540000 the cost will be depreciated straight line 2-0 over the project
Frank is looking at a new sausage system with an install cost of 540000 the cost will be depreciated straight line 2-0 over the project five-year life at the end of which the Sasha system can be scrapped for 80000 the sausage system will save the firm 170000 per year in pre-tax operating costs and the system required and initial investment net worth capital of 29000 if the tax rate is 34% and the discount rate is 10% what is the npv of this project
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