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Kolbys Korndogs is looking at a new sausage system with an installed cost of $665000 This cost will be depreciated straightline to zero over the projects fiveyear life at the end of which the

Kolby's Korndogs is looking at a new sausage system with an installed cost of $665,000. 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 $111,000. The sausage system will save the firm $199,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $57,000. If the tax rate is 34 percent and the discount rate is 8 percent, what is the NPV of this project? Do not round intermediate calculations a round your answer to 2 decimal places e.g., 32.16) NPV $

 

Apr 01 2020 View more View Less

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