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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 $10,100 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 $10,100 per year and will cut annual operating costs by $13,600. The system will cost $53,800 to purchase and install. This system is expected to have a 5-year life and will be depreciated to zero using straight-line depreciation and have no salvage value. The tax rate is 22 percent and the required return is 11.1 percent. What is the NPV of purchasing the pressure cooker?
$45,292
$23,078
$25,851
$35,009
$-3,637
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