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3. 4900000 the cost will be depreciated straightline to zero over...

# Question: 4900000 the cost will be depreciated straightline to zero over...

###### Question details

$4900,000. the cost will be depreciated straight-line to zero over the project's life, at the end of which the sausage can be scrapped for$72,000. the sausage system will save the firm $170,000 per year in pretax opperating costs, and the sytem requires an initial investment in net working capital of$31,000. If the tax rate is 30 percent and the discount rate is 8 percent, what is the npv of this project?