What is the npv of project if discount rate is nine percent

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Question 1: Dog Up! Franks is looking at a new sausage system with an installed cost of $460,000. 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 $59,000. The sausage system will save the firm $142,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $26,500. If the tax rate is 21 percent and the discount rate is 9 percent, what is the NPV of this project?

Reference no: EM132562145

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