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 $210,600. This




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 $210,600. This cost will be depreciated straight-line to zero over the project's 8-year life, at the end of which the sausage system can be scrapped for $32,400. The sausage system will save the firm $64,800 per year in pretax operating costs, and the system requires an initial investment in net working capital of $15,120. Required: If the tax rate is 31 percent and the discount rate is 13 percent, what is the NPV of this project? O $42,101.15 O $33,691.72 O $44.206.21 $43,124.18 O $51,533.61
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