Problem:
Dog Up! Franks is looking at a new sausage system costing $515,000, depreciated using straight line method over five years with a $77,000 salvage value. The sausage system will save $195,000 annually in pretax operating costs, and the project requires an initial working capital of $36,000.. If the tax rate is 35 percent and the discount rate is 9 percent, what is the NPV ?