Question
Franks is looking at a new sausage system with an installed cost of $540,000.This cost will be depreciated straight-line to zero over the project's 5
Franks is looking at a new sausage system with an installed cost of $540,000.This cost will be depreciated straight-line to zero over the project's 5 year life, at the end of which the sausage system can be scrapped for $80,000.The sausage system will save the firm $170,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $29,000.If the tax rate is 34% and the discount rate is 10%, what is the NPV of this project?
I'm stuck trying to do answer this question in excel? How is this done...with explanations
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