Question: The Ssusage Hut is looking at a new sausage system with an installed cost of $187,400. This cost will be deprecioted straight-line to zero over
The Ssusage Hut is looking at a new sausage system with an installed cost of \$187,400. This cost will be deprecioted straight-line to zero over the project's four-year life, at the end of which the sausage system can be scrapped for $25,000. The sousage system will save the firm $69,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $9,000, which wil be recouped at project end. If the tax rate is 21 percent and the discount rate is 12 percent, what is the NPV of this project? Mutiple Chaice 517,12002 $13320.8 $15$6024 5.4.419.10 sin,21us
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