Dog Up! Franks is looking at a new sausage system with an installed cost of $421,200....

Dog Up! Franks is looking at a new sausage system with an installed cost of $421,200. 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 $64,800. The sausage system will save the firm $129,600 per year in pretax operating costs, and the system requires an initial investment in net working capital of $30,240.

If the tax rate is 23 percent and the discount rate is 10 percent, what is the NPV of this project?

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jeff jeffy answered 1 year ago

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