Page 1 of 1
Dog Up! Franks is looking at a new sausage system with an installed cost of $335,400. This cost will be depreciated stra
Posted: Tue Jan 18, 2022 1:02 pm
by answerhappygod
- Dog Up Franks Is Looking At A New Sausage System With An Installed Cost Of 335 400 This Cost Will Be Depreciated Stra 1 (22.16 KiB) Viewed 239 times
Dog Up! Franks is looking at a new sausage system with an installed cost of $335,400. This cost will be depreciated straight-line to zero over the project's 9-year life, at the end of which the sausage system can be scrapped for $51,600. The sausage system will save the firm $103,200 per year in pretax operating costs, and the system requires an initial investment in net working capital of $24,080. If the tax rate is 22 percent and the discount rate is 9 percent, what is the NPV of this project?
Multiple Choice $201,884.82 $214,877.72 $211,979.06 $183,353.53 $196,346.42