Question: Please answer ASAP Q: Dog Up! Franks is looking at a new sausage system with an installed cost of $600,600. This cost will be depreciated

Please answer ASAP

Q:

Dog Up! Franks is looking at a new sausage system with an installed cost of $600,600. This cost will be depreciated straight-line to zero over the project's 8-year life, at the end of which the sausage system can be scrapped for $92,400. The sausage system will save the firm $184,800 per year in pretax operating costs, and the system requires an initial investment in net working capital of $43,120.

If the tax rate is 22 percent and the discount rate is 16 percent, what is the NPV of this project?

Multiple Choice

  • $67,276.18

  • $119,227.28

  • $93,722.98

  • $97,243.48

  • $89,259.98

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