Question: solve the table Dog Up! Franks is looking at a new sausage system with an installed cost of $695,000. This cost will be depreciated straight-line

solve the table Dog Up! Franks is looking at a new

solve the table

Dog Up! Franks is looking at a new sausage system with an installed cost of $695,000. 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 $93,000. The sausage system will save the firm $199,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $51,000. If the tax rate is 23 percent and the discount rate is 8 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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Multiple Choice Question Select the right answer (only one possible answers unless otherwise stated). 1 An example of an item that is not an intangible asset is (a) Patent (b) Goodwill (c) Computer...

using this template show how to solve #7 5. Dog Up! Franks is looking at a new sausage system with an installed cost of $460,000. This cost will be depreciated straight-line to zero over the...

Use the template to solve 5-7. 5. Dog Up! Franks is looking at a new sausage system with an installed cost of $460,000. This cost will be depreciated straight-line to zero over the project's...

Franks is looking at a new sausage system with an installed cost of $ 3 8 5 , 0 0 0 . This depreciated straight - line to zero over the project s five - year life, at the end of which the sausage...

pose the project requires time. You will save $130.000 before taxes per year in order processing costs, and you will be able to reduce working capital by $60,000 (this is a one-time reduction). If...

1.Calculating OCF Ranney, Inc., has sales of $14,900, costs of $5,800, depreciation expense of $1,300, and interest expense of $780. If the tax rate is 40 percent, what is the operating cash flow, or...

What is the payback period for the following set of cash flows? Year Cash Flow 0 $ 6,400 1 1,100 2 1,800 3 2,400 4 2,000 Multiple Choice 3.73 years 3.57 years 3.55 years 3.50 years 3.85 years 2. Dog...

2. Dog Up! Franks is looking at a new sausage system with an installed cost of $327,600. This cost will be depreciated straight-line to zero over the project's 8-year life, at the end of which the...

A firm is reviewing a project with labor cost of $8.60 per unit, raw materials cost of $24.85 a unit, and fixed costs of $11,000 a month. Sales are projected at 10,600 units over the 3-month life of...

Can you help me with these? Please show how you got each answer. Slow Ride Corp. is evaluating a project with the following cash flows: Year 0 1 2 3 4 5 Cash Flow -$29,900 12,100 14,800 16,700 13,800...

please answer both if possible thank you! Dog Up! Franks is looking at a new sausage system with an installed cost of $850,200. This cost will be depreciated straight-line to zero over the project's...

Prove that for each a R and each n N there exists a rational rn such that |a - rn|

Does the receipt of securities in exchange for the transfer of appreciated property to a controlled corporation cause recognition of gain? Explain.

Please Answer this on paper! Let is a TM that for all words w , M accepts both w and w R or it rejects both w and { : w R } Reminder: w R is the reverse of the string w . E . g . 1 1 0 1 R = 1 0 1 1...

SIMAD UNIVERSITY Class: BACC25 Subject: Islamic Accounting Instructions: a) Follow The Instructions. Midterm Exam Instructor: All Ibrahim Date: 6-4-2022 b) You Have 1.5 Hrs. To Complete This Test. c)...

C If you were a member of the city council, would you have reacted to the story differently if the speaker had presented it as a thirdhand account? Why or why not?

D How will your group react to this revelation?

Do you think that Jolies focus on resilience and individuals would be as crucial in a more collectivist culture?