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Number 7 on page 263 - Project Evaluation - Dog Up! Franks is looking at a new sausage system with an installed cost of $430,000.

Number 7 on page 263 - Project Evaluation - Dog Up! Franks is looking at a new sausage system with an installed cost of $430,000. This cost will be depreciated straight-line to zero over the projects five-year life, at the end of which the sausage system can be scrapped for $40,000. The sausage system will save the firm $130,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $15,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project

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