Problem 10-14 Project Evaluation [LO1]
Symon! Franks is looking at a new sausage system with an installed cost of $510,000. 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 $79,000. The sausage system will save
the firm $152,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $31,500. If
the tax rate is 21 percent and the discount rate is 9 percent, what is the NPV of this project?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
NPV