Question: Correct me if Im wrong. Need help. 3. Dogbert Franks Inc. is looking at a new sausage system that as an installed cost of $348,950.

 Correct me if Im wrong. Need help. 3. Dogbert Franks Inc.
Correct me if Im wrong. Need help.

3. Dogbert Franks Inc. is looking at a new sausage system that as an installed cost of $348,950. The equipment will be epreciated straight-line to zero over the project's 6-year e, at the end of which the sausage system can be scrapped for $50,000. The new system will INCREASE the firm's EBIT by 9134,400 per year and requires an initial investment in net working capital of $19,500. All of the net working capital will 35%. be recovered at the end of the project. The tax rate is Calculate the incremental annual cash flows (CFFA) for this project in the table below. (15 pts) 3 6 Initial Investment Change in - 19 soo Net wo Net proceeds: Asset Sale Incremental EBIT Depreciation +-19s" 20355 03533 0355 2035 5 0355 Incremental Taxes Incremental OCE Incremental CEFA 450 1440 1145

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