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Dog Up! Franks NPV

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Dog Up! Franks is looking at a new sausage system costing $515,000, depreciated using straight line method over five years with a $77,000 salvage value. The sausage system will save $195,000 annually in pretax operating costs, and the project requires an initial working capital of $36,000.. If the tax rate is 35 percent and the discount rate is 9 percent, what is the NPV ?

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Your tutorial is in excel and shows how to layout the fact pattern and includes instructional notes.

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Carol Sargent, PhD
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  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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