Question: 3. value: 2.00 points value: Problem 9-13 Project Evaluation [LO 2] Kolby's Korndogs is looking at a new sausage system with an installed cost of
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3. value: 2.00 points value: Problem 9-13 Project Evaluation [LO 2] Kolby's Korndogs is looking at a new sausage system with an installed cost of $910,000. This cost will be depreciated straight-line to zero over the project's seven- year life, at the end of which the sausage system can be scrapped for $105,000. The sausage system will save the firm $193,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $51,000. If the tax rate is 30 percent and the discount rate is 6 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
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