Project evaluation symon meats is looking at a new sausage


Project Evaluation Symon Meats is looking at a new sausage system with an Installed cost of $435,000. This cost will be depreclated stralght- line to zero over the project's five-year lfe, at the end of which the sausage system can be scrapped for $61,000. The sausage system will save the firm $255,000 per year In pretax operating costs, and the system requlres an Initial Investment In net working capltal of $20,000. If the tax rate is 35 percent and the discount rate Is 9 percent, what is the NPV of this project? (Do not round Intermediate calculatlons and round your answer to 2 decimal places, e.g., 32.16.)

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Financial Management: Project evaluation symon meats is looking at a new sausage
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