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SnapDog Inc. is considering buying a new server system with an initial cost of $1 million. The server system will have zero salvage value at

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SnapDog Inc. is considering buying a new server system with an initial cost of $1 million. The server system will have zero salvage value at the end of its 6-year life. The project will increase after tax Operating Carin Flows (OCF) including appropriate depreciation to the firm by $1,250,000 a year, as shown in the table below. If the form requires a 14 percent rate of return what is the Net Present Value of this project? Operating Cash Flow Year OCF o $4,000,000 1-6 $1,250,000 $860,834,39 0 -$245,820.48 O $251.860.93 O $981.683.39 0 $725,000.84

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