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Dog Up! Franks is looking at a new sausage system with an installed cost of $480,000....

Dog Up! Franks is looking at a new sausage system with an installed cost of $480,000. The fixed asset will qualify for 100 percent bonus depreciation. In five years, the sausage system can be scrapped for $67,000. The sausage system will save the firm $159,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $28,500. If the tax rate is 25 percent and the discount rate is 13 percent, what is the NPV of this project?

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