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Dog Up! Franks is looking at a new sausage system with an installed cost of $179,400. This cost will be depreciated stra
Posted: Sun Jun 05, 2022 7:57 pm
by answerhappygod
- Dog Up Franks Is Looking At A New Sausage System With An Installed Cost Of 179 400 This Cost Will Be Depreciated Stra 1 (67.23 KiB) Viewed 47 times
Dog Up! Franks is looking at a new sausage system with an installed cost of $179,400. This cost will be depreciated straight-line to zero over the project's 7-year life, at the end of which the sausage system can be scrapped for $27,600. The sausage system will save the firm $55,200 per year in pretax operating costs, and the system requires an initial investment in net working capital of $12,880. If the tax rate is 23 percent and the discount rate is 13 percent, what is the NPV of this project?