Question: Maple Syrup Co is buying a new tapping system with an installed cost of $290,000. This cost will be straight-lined depreciated to zero over the

Maple Syrup Co is buying a new tapping system with an installed cost of $290,000. This cost will be straight-lined depreciated to zero over the project's 5-year life, at the end of which the tapping system can be scrapped for $30,000. The tapping system will safe the firm $105,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $13,000. If the tax rate is .34 percent and the discount rate is 10 percent, what is the NPV of the project?

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