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Avignon Restaurant is considering the purchase of a $9,700 soufflé maker. The soufflé maker has an economic life of four
Posted: Sun Jun 05, 2022 7:20 am
by answerhappygod
- Avignon Restaurant Is Considering The Purchase Of A 9 700 Souffle Maker The Souffle Maker Has An Economic Life Of Four 1 (41.97 KiB) Viewed 30 times
Avignon Restaurant is considering the purchase of a $9,700 soufflé maker. The soufflé maker has an economic life of four years and will be fully depreciated by the straight-line method. The machine will produce 1,850 soufflés per year, with each costing $2.10 to make and priced at $5.10. Assume that the discount rate is 15 percent and the tax rate is 22 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV Should the
company make the purchase? Yes O No