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Obama's Meats is looking at a new sausage system with an installed cost of $510,000. This cost will be depreciated straight-line to zero over the

Obama's Meats is looking at a new sausage system with an installed cost of $510,000. 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 $76,000. The sausage system will save the firm $190,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $35,000. If the tax rate is 21 percent and the discount rate is 10 percent, what is the NPV of this project

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