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Dog Up! Franks is looking at a new sausage system with an installed cost of $803,400....

Dog Up! Franks is looking at a new sausage system with an installed cost of $803,400. This cost will be depreciated straight-line to zero over the project's 10-year life, at the end of which the sausage system can be scrapped for $123,600. The sausage system will save the firm $247,200 per year in pretax operating costs, and the system requires an initial investment in net working capital of $57,680.

  

If the tax rate is 24 percent and the discount rate is 13 percent, what is the NPV of this project?

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jeff jeffy answered 1 year ago
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