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Project Evaluation [L01] Dog up! Franks is looking at a new sausage system with an installed cost of $540,000. This cost will be depreciated straight-line

Project Evaluation [L01] Dog up! Franks is looking at a new sausage system with an installed cost of $540,000. 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 $80,000. The sausage system will save the firm $170,000 per year in pretax operating cost, and the system requires an initial investment in net working capital of $29,000. If the tax is 34 percent and the discount rate is 10 percent, what is the NPV of this project? Please show how you came up with the correct answer. Thanks

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