Dog Up! Franks is looking at a new sausage system with an installed cost of $705,000. The asset qualifies for 100 percent bonusdepreciation and can be scrapped for $95,000 at the end of the project's 5-year life. The sausage system will save the firm $203,000per year in pretax operating costs, and the system requires an initial investment in net working capital of $55,000. If the tax rate is 25percent 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

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Description: Dog Up! Franks is looking at a new sausage system with an installed cost of $705,000. The asset qualifies for 100 percent bonusdepreciation and can be scrapped for $95,000 at the end of the project's 5-year life. The sausage system will save the fir

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what is the NPV of this project? ons and round your answer to 2 decin ons

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 4P

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