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(Solved): ItemSkipped eBookHintReferences Check my workCheck My Work button is now enabled1 Item 2 Proble ...



ItemSkipped eBookHintReferences Check my workCheck My Work button is now enabled1 Item 2 Problem 6-8 Project Evaluation Symon! Franks is looking at a new sausage system with an installed cost of $515,000. 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 $81,000. The sausage system will save the firm $153,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $32,000. 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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