Project Evaluation. Kolbys Korndogs is looking at a new sausage system with an installed cost of $625,000. This cost will be depreciated straight-line to zero over the projects 5 year life, at the end of which the sausage system can be scrapped for $95,000. The sausage system will save the firm $183,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $41,000. If the tax rate is 34%, and the discount rate is 8%, what is the NPV of this project?

How would you calculate this on an excel sheet to cover 5 years for cash flow, purchase price, change in NWC, Operating cash flow, After tax salvage value, total cash flow, and PV cash flow.