What is the npv of project

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Dog Up! Franks is looking at a new sausage system with an installed cost of $889,200. This cost will be depreciated straight-line to zero over the project's 7-year life, at the end of which the sausage system can be scrapped for $136,800. The sausage system will save the firm $273,600 per year in pretax operating costs, and the system requires an initial investment in net working capital of $63,840.

Required:If the tax rate is 33 percent and the discount rate is 8 percent, what is the NPV of this project?

$256,848.19
$325,845.02
$336,918.56
$310,328.59
$283,438.17

Reference no: EM132596254

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