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The Sausage Hut is looking at a new sausage system with an installed cost of $438,000. This cost will be depreciated straight-line to vero over

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The Sausage Hut is looking at a new sausage system with an installed cost of $438,000. This cost will be depreciated straight-line to vero over the project's four-year life, at the end of which the sausage system can be scrapped for $69.000. The sausage system will save the firm $129.000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $29.000, which will be recouped at project end. If the tax rate is 35 percent and the discount rate is 6 percent, what is the NPV of this project? O $18,870 0-$8,620 O $7.580 $14,845 O $29.880 4 pts Question 11 The Tool Box needs to purchase a new machine costing $1.46 million, Management is estimating the machine will generate cash inflows of $223,000 the first year and $600,000 for the following three years. It management requires a minimum 12 percent rate of return should the firm purchase this particular machine? Why or why not? Yes, because the IRR is 10.75 percent Yes, because the IRR is 12.74 percent No, because the IRR is 10.75 percent No, because the IRR is 12.74 percent The answer cannot be determined as there are multiple IRRS

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