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Kolby’s Korndogs is looking at a new sausage system with an installed cost of $725,000. This cost will be depreciated straight-line to zero over the project’s 7-year life, at the end of which the sausage system can be scrapped for $99,000. The sausage system will save the firm $211,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $63,000.

If the tax rate is 24 percent and the discount rate is 10 percent, what is the NPV of this project?

Assume that you graduated from collage with a major in marketing and took a job with a large consumer product company.after 3 years, you laid off when the company downsizes.describe the steps you’d take to “repackage” yiurself for another field.

 

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