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D Question 1 1 pts The Continental Firehouse is considering extending its hours to open in the mornings as a cafe. Purchase of additional restaurant
D Question 1 1 pts The Continental Firehouse is considering extending its hours to open in the mornings as a cafe. Purchase of additional restaurant equipment espresso cappuccino maker) will cost $65.000 Management believes that there will be strong demand for the cafe which would result in additional net revenues to the form of 532.000 for each of the next three years. What is the NPV of undertaking the project if the discount rate is 12.5% for this project! D Question 2 1 pts Michigan Tech's Athletic Department is considering the purchase of a new Zambon for the ice rink. The current Zamboni would last another 4 years at an annual cost of $15,000. The new Zamboni would cost $110.000, Last 20 years and cost $5.000 in annual maintenance costs. If the cost of capitalis 8%, what is the NPV of the proposed Zamboni Question 3 1 pts What is the EAC of the Zamboni proposed in the previous problem? D Question 4 1 pts What decision should Michigan Tech make with regard to the Zamboni purchase? It should keep the existing siten since is has a higher bet It should keep the existing stem since it has a lower cost I should accept the new Zambon since it has a lower cost
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