What is the npv of this project

Reference no: EM133559747

Question: Cori's Meats is looking at a new sausage system with an installed cost of $500,000. 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 $74,000. The sausage system will save the firm $180,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $33,000. If the tax rate is 24 percent and the discount rate is 9 percent, what is the NPV of this project?

Reference no: EM133559747

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