Dog Up! Franks is looking at a new sausage system with an installed cost of $520,000. The system qualifies for 100 percent bonus depreciation, and at the end of the project in 5 years the sausage system can be scrapped for $78,000. The sausage system will sav the firm $200,000 per year in pretax operating costs and the system requires an initial investment in net working capital of $37,000. 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. NPV

Dog Up! Franks is looking at a new sausage system with an installed cost of $520,000. The system qualifies for 100 percent bonus depreciation, and at the end of the project in 5 years the sausage system can be scrapped for $78,000. The sausage system will sav the firm $200,000 per year in pretax operating costs and the system requires an initial investment in net working capital of $37,000. 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. NPV

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Description: Dog Up! Franks is looking at a new sausage system with an installed cost of $520,000. The system qualifies for 100 percent bonusdepreciation, and at the end of the project in 5 years the sausage system can be scrapped for $78,000. The sausage system

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 2PB: Markoff Products is considering two competing projects, but only one will be selected. Project A...

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Dog Up! Franks is looking at a new sausage system with an installed cost of $705,000. The asset qualifies for 100 percent bonus depreciation and can be scrapped for $95,000 at the end of the project's 5-year life. The sausage system will save the firm $203,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $55,000. If the tax rate is 25 percent and the discount rate is 10 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. × Answer is complete but not entirely correct. NPV $ 102,289.06 X
Dog Up! Franks is looking at a new sausage system with an installed cost of $695,000. The asset qualifies for 100 percent bonus depreciation and can be scrapped for $93,000 at the end of the project's 5-year life. 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. NPV Answer is complete but not entirely correct. $ 76,896.20 ☑