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The Sausage Hut is looking at a new sausage system with an installed cost of $330,000. This cost will be depreciated straight-line to zero over
The Sausage Hut is looking at a new sausage system with an installed cost of $330,000. This cost will be depreciated straight-line to zero over the project's three- year life, at the end of which the sausage system can be scrapped for $69,000. The new system will increase the firm's Operating Cash Flow (OCF) by $123,300 each year during its three year life If the tax rate is 30 percent and the discount rate is 9 percent, what is the NPV of this project? $17,891 -$3.463 $19,405 $33,833 $35.389 Previous Next >
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