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What is the npv of this project

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Question - Kolby's Korndogs is looking at a new sausage system with an installed cost of $700,000. This cost will be depreciated straight-line to zero over the project's l6-year life, at the end of which the sausage system can be scrapped for $94,000. The sausage system will save the firm $201,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $53,000. If the tax rate is 24 percent and the discount rate is 9 percent, what is the NPV of this project?

Reference no: EM133055986

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