Question
La Pizzeria is considering investing in new kitchen equipment. The equipment costs 80,000 and is expected to generate annual cash flows of 20,000 for 6
La Pizzeria is considering investing in new kitchen equipment. The equipment costs €80,000 and is expected to generate annual cash flows of €20,000 for 6 years. The discount rate is 10%. Calculate the net present value (NPV) of the investment and advise whether La Pizzeria should proceed with the investment.
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Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
14th edition
1337270598, 978-1337270595
