Question: 4 value: 25.00 points P10-13 Project Evaluation [LO1] Dog Up! Franks is looking at a new sausage system with an installed cost of $249,600. This
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4 value: 25.00 points P10-13 Project Evaluation [LO1] Dog Up! Franks is looking at a new sausage system with an installed cost of $249,600. This cost will be depreciated straight-line to zero over the project's 4-year life, at the end of which the sausage system can be scrapped for $38,400. The sausage system will save the firm $76,800 per year in pretax operating costs, and the system requires an initial investment in net working capital of $17,920 Required If the tax rate is 35 percent and the discount rate is 9 percent, what is the NPV of this project? o $-22,342.72 O $-4.66043 O $564.59 o $-17,117.70 $4,893.45
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