Transcribed Image Text
Dog Up! Franks is looking at a new sausage system with aninstalled cost of $530,400. This cost will be depreciatedstraight-line to zero over the project's 9-year life, at the end ofwhich the sausage system can be scrapped for $81,600. The sausagesystem will save the firm $163,200 per year in pretax operatingcosts, and the system requires an initial investment in net workingcapital of $38,080. If the tax rate is 21 percent and the discount rate is 10percent, what is the NPV of this project?
Other questions asked by students
Advance Math
Basic Math
Accounting