4 /14.28 oints awarded Scored Problem 6-8 Project Evaluation Dog Up! Franks is looking at a new sausage system with an i

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4 14 28 Oints Awarded Scored Problem 6 8 Project Evaluation Dog Up Franks Is Looking At A New Sausage System With An I 1 (61.37 KiB) Viewed 33 times

4 /14.28 oints awarded Scored Problem 6-8 Project Evaluation Dog Up! Franks is looking at a new sausage system with an installed cost of $515,000. 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 $81,000. The sausage system will save the firm $153,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $32,000. If the tax rate is 22 percent and the discount rate is 10 percent, what is the NPV of this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ 25,848.38