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
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
