Help Seve Sub Dog Up! Franks is looking at a new sausage system with an...

60.1K

Verified Solution

Question

Finance

image
Help Seve Sub Dog Up! Franks is looking at a new sausage system with an installed cost of $435,000 This cost will be depreciated straight line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $49,000. The sausage system will save the firm $137.000 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 21 percent and the discount rate is 9 percent, what is the NPV of this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 3216.) NPV

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students