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Creole Restaurant is considering the purchase of a $11,000 souffl maker. The souffl maker has an economic life of four years and will be fully
Creole Restaurant is considering the purchase of a $11,000 souffl maker. The souffl maker has an economic life of four years and will be fully depreciated by the straight-line method. The machine will produce 2,500 souffls per year, with each costing $2.90 to make and priced at $5.75. Assume that the discount rate is 16 percent and the tax rate is 34 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV
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