Raleigh Paving Co. is looking at a new sausage system with an installed cost of $397,800. This cost will be depreciated straight-line to zero over the project's 7 -year life, at the end of which the sausage system can be scrapped for $61,200. The sausage system will save the firm $122,400 per year in pretax operating costs, and the system requires an initial investment in net working capital of $28,560. All of the net working capital will be recovered at the end of the project. The tax rate is 33 percent and the discount rate is 9 percent. What is the net present value of this project? $41,311$7,820$81,507$98,441$118,821 QUESTION 13 Raleigh Paving Co. is evaluating a project that will increase annual sales by $145,000 and annual cash costs by $94,000. The project will initially require $110,000 in fixed assets that will be depreciated straight-line to a zero book value over the 4 -year life of the project. The applicable tax rate is 32 percent. What is the operating cash flow for this project? $11,220 $29,920 $43,480 $46,480 $46,620