Question: I need help with the formula and understanding where i made the mistake please! Dog Upl Franks is looking at a new sausage system with
Dog Upl Franks is looking at a new sausage system with an installed cost of $670,000. This cost will be depreciated straight-line to zero over the project's 5-year life, at the end of which the sausage system can be scrapped for $88,000. The sausage system will save the firm $213,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $41,000. If the tax rate is 23 percent and the discount rate is 11 percent, what is the NPV of this project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct. $693,287.82
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