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Avignon Restaurant is considering the purchase of a $10,800 souffle maker. The souffie maker has an economic life of five years and will be fully

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Avignon Restaurant is considering the purchase of a $10,800 souffle maker. The souffie maker has an economic life of five years and will be fully depreciated by the straight-line method. The machine will produce 2,400 souffls per year, with each costing $2.80 to make and priced at $5.65. Assume that the discount rate is 16 percent and the tax rate is 23 percent. What is the NPV of the project? (Do not round intermedlate calculations and round your answer to 2 decimal places, e.g. 32.16.) Should the company make the purchase? No Yes Year Straight-ne Depreclation Tax Rate Soutle's peryoar Sale Prion perunt Varibblo Op. Costs per unt Sales: Op Costs Depreciation EBiT Taxns Not income Deprecistion Operating oash flow Ast cesh homs Operathg cash fow Chanoe in NWC Copitaingending Net Salvage Value Total cash fiow WACC NPY PI NARR Payback

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