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What is the NPV of this project?

Please help me solve this problem, show steps, and formula Thankyou! Franks is looking at a new sausage system with an installed costof $375,000. This cost will be depreciated straight-line to zeroover the project’s five-year life, at the end of which the sausagesystem can be scrapped for $40,000. The sausage system will savethe firm $105,000 per year in pretax operating costs, and thesystem requires an initial investment in net working capital of$28,000. If the tax rate is 34 percent and the discount rate is 10percent, what is the NPV of this project? (Assume that dNWC will befully recovered in the last year of the project.) . . .


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