SHOW THE STEPS ON HOW TO CALCULATE NPV.

Calculate the OCF first and then clearly show how you use that to get NPV.

DONT USE EXCEL, PLEASE!!!!!!!!!!!!!!!!!!

Kolby's Korndogs is looking at a new sausage system with an installed cost of $750,000. 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 $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? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete and correct. NPV $ 162,862.59