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Dog Up Franks is looking at a new sausage system with an installed cost of $520,000

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Dog Up Franks is looking at a new sausage system with an installed cost of $520,000. The fixed asset will qualify for 100 percent bonus depreciation. In five years, the sausage system can be scrapped for $83,000. The sausage system will save the firm $154,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $32,500. If the tax rate is 23 percent and the discount rate is 11 percent, what is the NPV of this project?