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The Bondi Pizza Palace is looking at a new pizza oven with an installed cost of $438,000. This cost

The Bondi Pizza Palace is looking at a new pizza oven with an installed cost of $438,000. This cost will be depreciated straight-line to zero over the project’s four-year life, at the end of which the system has a 30% chance to be scrapped for $73,000, a 50% chance to scrapped for $70,000 and a 20% chance to be scrapped for $59,750. The pizza system will save the firm $129,000 per year in pre-tax operating costs and the system requires an initial investment in net working capital of $29,000, which will be recouped at project end. If the tax rate is 35% and the discount rate is 9%, what is the NPV of this project?

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