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Dog Up! Franks is looking at a new sausage system with an installed cost of $897,000....
Dog Up! Franks is looking at a new sausage system with an installed cost of $897,000. This cost will be depreciated straight-line to zero over the project's 4-year life, at the end of which the sausage system can be scrapped for $138,000. The sausage system will save the firm $276,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $64,400. If the tax rate is 23 percent and the discount rate is 12 percent, what is the NPV of this project?
Multiple Choice $-27,313.48 $-53,325.42 $-50,786.12 $-94,843.63 $-118,316.27
Solutions
jeff jeffy answered 2 years agoRelated Solutions
A) Dog Up! Franks is looking at a new sausage system with an installed cost of...
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installed cost of $351,000. This cost will be depreciated
straight-line to zero over the project's 8-year life, at the end of
which the sausage system can be scrapped for $54,000. The sausage
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