Question: Kolbys Korndogs is looking at a new sausage system with an installed cost of $655,000. This cost will be depreciated straight-line to zero over the

Kolbys Korndogs is looking at a new sausage system with an installed cost of $655,000. This cost will be depreciated straight-line to zero over the projects five-year life, at the end of which the sausage system can be scrapped for $107,000. The sausage system will save the firm $195,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $53,000. Required: What is the aftertax salvage value of the equipment? (Do not round intermediate calculations. Round your answer to the nearest whole number (e.g., 32).)

Aftertax salvage value $

What is the annual operating cash flow? (Do not round intermediate calculations. Round your answer to the nearest whole number (e.g., 32).)

OCF $

If the tax rate is 34 percent and the discount rate is 8 percent, what is the NPV of this project? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

NPV $

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