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Category > Business & Finance Posted 05 Jun 2017 My Price 10.00

Dog Up! Franks is looking at a new sausage system with an installed cost of $525,000.

Question description

Dog Up! Franks is looking at a new sausage system with an installed cost of $525,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for $79,000. The sausage system will save the firm $205,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $38,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project? 

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Status NEW Posted 05 Jun 2017 09:06 PM My Price 10.00

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