Dog Up! Franks is looking at a new sausage system with an installed cost of $715,000. The asset qualifies for 100 percent depreciation and can be scrapped for $97,000 at the end of the project's 5-year life. The sausage system will save the fir per year in pretax operating costs, and the system requires an initial investment in net working capital of $59,000. If the t 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. NPV

Dog Up! Franks is looking at a new sausage system with an installed cost of $715,000. The asset qualifies for 100 percent depreciation and can be scrapped for $97,000 at the end of the project's 5-year life. The sausage system will save the fir per year in pretax operating costs, and the system requires an initial investment in net working capital of $59,000. If the t 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. NPV

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Description: Nikul Dog Up! Franks is looking at a new sausage system with an installed cost of $715,000. The asset qualifies for 100 percent bonusdepreciation and can be scrapped for $97,000 at the end of the project's 5-year life. The sausage system will save th

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 10P

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Dog Up! Franks is looking at a new sausage system with an installed cost of $715,000. The asset qualifies for 100 percent bonus depreciation and can be scrapped for $97,000 at the end of the project's 5-year life. The sausage system will save the firm $207,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $59,000. If the tax rate is 22 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. NPV
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