What is the npv of the project-symon meats

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Symon Meats is looking at a new sausage system with an installed cost of 475,000. This cost will be depreciated straight-line to zero over the projects five-year life, at the end of which the sausage system can be scrapped for 69,000. The sausage system will save the firm 215,000 a year in pretax operating costs, and the system requires an initial investment in net working capital of 28,000. If the tax rate is 30% and the discount rate is 8%, what is the NPV of the project?

Reference no: EM133003079

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