Question
Analyze the investment decision of La Pizzeria regarding a new wood-fired pizza oven. The oven costs 50,000 and is expected to generate cash inflows of
Analyze the investment decision of La Pizzeria regarding a new wood-fired pizza oven. The oven costs €50,000 and is expected to generate cash inflows of €15,000 per year for the next five years. The company's discount rate is 8%. Calculate the net present value (NPV) and internal rate of return (IRR) of the investment and interpret the results.
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
15th Edition
978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960
