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Flatte Restaurant is considering the purchase of a $9,600 souffl maker. The souffl maker has an economic life of eight years and will be fully
Flatte Restaurant is considering the purchase of a $9,600 souffl maker. The souffl maker has an economic life of eight years and will be fully depreciated by the straight-line method. The machine will produce 1,800 souffls per year, with each costing $2.20 to make and priced at $5.05. Assume that the discount rate is 10 percent and the tax rate is 40 percent. |
What is the NPV of the project?(Do not round intermediate calculations andround your answer to 2 decimal places, e.g., 32.16.) |
NPV | $ |
Should the company make the purchase? | ||
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