Kolbys Korndogs is looking at a new sausage system with a

Kolby’s Korndogs is looking at a new sausage system with an installed cost of $938,000. This cost will be depreciated straight-line to zero over the project’s seven-year life, at the end of which the sausage system can be scrapped for $113,000. The sausage system will save the firm $201,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $59,000.Required:If the tax rate is 30 percent and the discount rate is 7 percent, what is the NPV of this project?