Question
In: Finance
Dog Up! Franks is looking at a new sausage system with an installed cost of $694,200....
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Dog Up! Franks is looking at a new sausage system with an installed cost of $694,200. 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 $106,800. The sausage system will save the firm $213,600 per year in pretax operating costs, and the system requires an initial investment in net working capital of $49,840. |
| If the tax rate is 21 percent and the discount rate is 12
percent, what is the NPV of this project? |
Multiple Choice
-
$351,733.19
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$307,818.46
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$334,983.99
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$368,776.84
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$341,611.32
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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Dog Up! Franks is looking at a new sausage system with an installed cost of $733,200....
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If the tax rate is 24 percent and the discount...
Dog Up! Franks is looking at a new sausage system with an installed cost of $343,200....
Dog Up! Franks is looking at a new sausage system with an
installed cost of $343,200. This cost will be depreciated
straight-line to zero over the project's 7-year life, at the end of
which the sausage system can be scrapped for $52,800. The sausage
system will save the firm $105,600 per year in pretax operating
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capital of $24,640. If the tax rate is 21 percent and the discount
rate...
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which the sausage system can be scrapped for $138,000. The sausage
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Dog Up! Franks is looking at a new sausage system with an installed cost of $312,000....
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which the sausage system can be scrapped for $48,000. The sausage
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costs, and the system requires an initial investment in net working
capital of $22,400. Required: If the tax rate is 33 percent and the
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straight-line to zero over the project's five-year life, at the end
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which the sausage system can be scrapped for $141,600. The sausage
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