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Franks is looking at a new sausage system with an installed cost of $956000. This cost will be depreciated straight-line to 46000 over the project's

Franks is looking at a new sausage system with an installed cost of $956000. This cost will be depreciated straight-line to 46000 over the project's 7-year life, at the end of which the sausage system can be scrapped for $98000. The sausage system will save the firm $259000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $40000. If the tax rate is 0.32 and the discount rate is 0.08, what is the total cash flow in year 7?

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