Dog Up! Franks is looking at a new sausage system with an installed cost of $435,000....
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Dog Up! Franks is looking at a new sausage system with an installed cost of $435,000. The fixed asset will qualify for 100 percent bonus depreciation. In five years, the sausage system can be scrapped for $49,000. The sausage system will save the firm $137,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $24,000. If the tax rate is 21 percent and the discount rate is 9 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 Dog Up! Franks is looking at a new sausage system with an installed cost of $435,000. The fixed asset will qualify for 100 percent bonus depreciation. In five years, the sausage system can be scrapped for $49,000. The sausage system will save the firm $137,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $24,000. If the tax rate is 21 percent and the discount rate is 9 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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Calculation of NPV for the Sausage System Project Given data Initial cost of the sausage system 4350... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1260153590
12th edition
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
Posted Date:
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