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Kolby's Korndogs is looking at a new sausage system with an installed cost of $ 6 9 0 , 0 0 0 . This cost

Kolby's Korndogs is looking at a new sausage system with an installed cost of $690,000.
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 $92,000. The sausage system will
save the firm $224,000 per year in pretax operating costs, and the system requires an
initial investment in net working capital of $49,000.
What is the aftertax salvage value of the equipment? (Do not round intermediate
calculations and round your answer to the nearest whole number, e.g.,32.)
Aftertax salvage value
What is the annual operating cash flow? (Do not round intermediate calculations and
round your answer to the nearest whole number, e.g.,32.)
OCF
If the tax rate is 22 percent and the discount rate is 11 percent, what is the NPV of this
project? (Do not round intermediate calculations and round your answer to 2 decimal
places, e.g.,32.16.)
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