CHAPTER 8: PROBLEM 1
Cost of Souffle Maker	$27,000	($27,000)
Economic Life	6	years
# of Souffles produced per year	2,300
Cost to make each Souffle	$2
Price of each Souffle	$7
Discount Rate	14%
Tax Rate	34%
Step 1: First calculate the Operating Cash Flow.
Step 2: Place the answer you get for your Operating Cash Flow in the year 1 thru year 6 cells below.
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Step 3: Now find the NPV. Be sure to include the initial cost by using cell C58 as it is negative.
NPV =		(You will accept the project if the NPV is positive.)