Question
In: Finance
Dog Up! Franks is looking at a new sausage system with an installed cost of $569,400....
Dog Up! Franks is looking at a new sausage system with an installed cost of $569,400. This cost will be depreciated straight-line to zero over the project's 5-year life, at the end of which the sausage system can be scrapped for $87,600. The sausage system will save the firm $175,200 per year in pretax operating costs, and the system requires an initial investment in net working capital of $40,880
If the tax rate is 33 percent and the discount rate is 16 percent, what is the NPV of this project?
$-83,417.55
$-34,057.02
$-62,001.05
$-58,247.20
$-55,473.52
Solutions
jeff jeffy answered 1 year agoRelated Solutions
A) Dog Up! Franks is looking at a new sausage system with an installed cost of...
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