Avignon Restaurant is considering the purchase of a $$9,500$ souffl$$ maker. The souffl$$ maker has an economic life of five years and will be fully depreciated by the straight$-$line method. The machine will produce $1,750$ souffl$$s per year, with each costing $$2\mathrm{.}50$ to make and priced at $$5\mathrm{.}00.$ Assume that the discount rate is $12$ percent and the tax rate is $25$ percent. What is the NPV of the project?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$Avignon Restaurant is considering the purchase of a $$9,500$ souffl$$ maker. The souffl$$ maker has an economic life of five years and

will be fully depreciated by the straight$-$line method. The machine will produce $1,750$ souffl$$s per year, with each costing $$2\mathrm{.}50$ to

make and priced at $$5\mathrm{.}00.$ Assume that the discount rate is $12$ percent and the tax rate is $25$ percent. What is the NPV of the project?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

NPV

Should the company make the purchase?

Yes

No