Question: 8 value: 10.00 points Dog Up! Franks is looking at a new sausage system with an installed cost of $850,200. This cost will be depreclated
8 value: 10.00 points Dog Up! Franks is looking at a new sausage system with an installed cost of $850,200. This cost will be depreclated stralght-line to zero over the project's 3-year lfe, at the end of which the sausage system can be scrapped for $130,800. The sausage system will save the firm $261,600 per year In pretax operating costs and the system requires an initial investment in net working capital of $61,040. Required: If the tax rate Is 35 percent and the discount rate is 12 percent, what is the NPV of this project? O $-168,663.96 O $-22114790 O $160,632.34 $203,554.97 $-143,039.41 References eBook & Resources Multiple Choice ning Objective: 10-01 How to determine Lear the relevant cash flows for a proposed project
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