The sausage hut is looking at a new sausage system with an


The Sausage Hut is looking at a new sausage system with an installed cost of $187,400. 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 $25,000. The sausage system will save the firm $69,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $9,000, which will be recouped at project end. If the tax rate is 34 percent and the discount rate is 12 percent, what is the NPV of this project?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The sausage hut is looking at a new sausage system with an
Reference No:- TGS01732750

Expected delivery within 24 Hours