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Mathematics, 18.08.2021 01:00 rockinrhonda19ovewso

Dog Up! Franks is looking at a new sausage system with an installed cost of $460,200. This cost will be depreciated straight-line to zero over the project's 6-year life, at the end of which the sausage system can be scrapped for $70,800. The sausage system will save the firm $141,600 per year in pretax operating costs, and the system requires an initial investment in net working capital of $33,040. If the tax rate is 22 percent and the discount rate is 10 percent, what is the NPV of this project?

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