Question: will be Kolby's Korndogs is looking at a new sausage system with an installed cost of $800,000. This cost depreciated straight-line to zero over the
will be Kolby's Korndogs is looking at a new sausage system with an installed cost of $800,000. This cost depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $95,000. The sausage system will save the firm $150,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $45,000. If the tax rate is 35 percent and the discount rate is 10 percent, what is the NPV of this project? $221,957.48 $421,957.56 $321,957.41 250,957.52
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