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Chauhan Restaurant is considering the purchase of a souffl maker that costs $10,200. The souffl maker has an economic life of 6 years and will
Chauhan Restaurant is considering the purchase of a souffl maker that costs $10,200. The souffl maker has an economic life of 6 years and will be fully depreciated by the straight-line method. The machine will produce 1,400 souffls per year, with each costing $2.40 to make and priced at $4.85. The discount rate is 13 percent and the tax rate is 21 percent. What is the NPV of the project?
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