What is the aftertax salvage value of the equipment

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Reference no: EM131905436

Kolby’s Korndogs is looking at a new sausage system with an installed cost of $522,000. This cost will be depreciated straight-line to zero over the project’s four-year life, at the end of which the sausage system can be scrapped for $106,000. The sausage system will save the firm $194,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $52,000.

What is the aftertax salvage value of the equipment? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Aftertax salvage value $

What is the annual operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

OCF $

Please show all work.

Reference no: EM131905436

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