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Cori's Dog House is considering the installation of a new computerized pressure cooker for hot dogs. The cooker will increase sales by $8900 per year
Cori's Dog House is considering the installation of a new computerized pressure cooker for hot dogs. The cooker will increase sales by $8900 per year and will cut annual operating costs by $13,000. The system will cost $45,300 to purchase and install. This system is expected to have a 4-year life and will be depreciated to zero using straight-line depreciation and have no salvage value. The tax rate is 40 percent and the required return is 10.5 percent. What is the NPV of purchasing the pressure cooker? -$23,380 O $17,213 $10,111 O -$3624 $3478
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