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Dog Up Franks is looking at a new sausage system with an installed cost of $511897 This cost will be depreciated straight line to zero over the projects five-year life at the end of which the

Dog Up! Franks is looking at a new sausage system with an installed cost of $511897. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $79464. The sausage system will save the firm $171159 per year in pretax operating costs, and the system requires an initial investment in net working capital of $34268. If the tax rate is 36 percent and the discount rate is 11 percent, what is the NPV of this project? (Do not round intermediate calculations and round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.)

 

Apr 08 2020 View more View Less

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