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Kolbys Korndogs is looking at a new sausage system with an installed cost of $715,000. This cost will be depreciated straight-line zero over the projects

Kolbys Korndogs is looking at a new sausage system with an installed cost of $715,000. This cost will be depreciated straight-line zero over the projects 6-year life, at the end of which the sausage system can be scrapped for $97,000. The sausage system will save the firm $207,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $59,000. What is the aftertax salvage value of the equipment? What is the annual operating cash flow?

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