Transcribed Image Text
Dog Up! Franks is looking at a new sausage system with aninstalled cost of $502923. This cost will be depreciatedstraight-line to zero over the project's five-year life, at the endof which the sausage system can be scrapped for $72139. The sausagesystem will save the firm $192878 per year in pretax operatingcosts, and the system requires an initial investment in net workingcapital of $31765. If the tax rate is 32 percent and the discountrate is 8 percent, what is the NPV of this project? (Do not roundintermediate calculations and round your final answer to thenearest dollar amount. Omit the "$" sign and commas in yourresponse. For example, $123,456.78 should be entered as123457.)
Other questions asked by students
Statistics
Accounting
Accounting
Accounting