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Please make sure the answer is correct and show how you got it, thanks! Dog Up! Franks is looking at a new sausage system with
Please make sure the answer is correct and show how you got it, thanks!
Dog Up! Franks is looking at a new sausage system with an installed cost of $750,000. This cost will be depreciated straight-4ine to zero over the project's 7-year life, at the end of which the sausage system can be scrapped for $104,000. The sausage system will save the firm $221,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $73,000. If the tax rate is 24 percent and the discount rate is 11 percent, what is the NPV of this project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.9. 32.16 Step by Step Solution
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