Kolbys Korndogs is looking at a new sausage system with an installed cost of $765,000

User Generated

f_jvyyuvgr

Business Finance

Description

Kolby's Korndogs is looking at a new sausage system with an installed cost of $765,000.  This cost will be depreciated straight-line zero over the projects 6 yr life at the end of which the sausage system can be scrapped for $100,000.  The sausage system will save the firm $188,000 per yr. in pretax operating costs, and the system requires an initial investment in NWC of $46,000. If the tax is 35% and the discount rate is 7% what is the NPV?

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

This question has not been answered.

Create a free account to get help with this and any other question!

Related Tags