Question
Symon Meats is looking at a new sausage system with an installed cost of $455,000. This cost will be depreciated straight-line to zero over the
Symon Meats is looking at a new sausage system with an installed cost of $455,000. 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 $65,000. The sausage system will save the firm $235,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $24,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project?
this is the 4th time ,i am posting this question .All before 3 reply were wrong .I want credit back for thos questions and and solve this carefully.
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