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Paul Restaurant is considering the purchase of a $10,000 souffl maker. The souffl maker has an economic life of 6 years and will be fully
Paul Restaurant is considering the purchase of a $10,000 souffl maker. The souffl maker has an economic life of 6 years and will be fully depreciated by the straight-line method. The machine will produce 1,600 souffls per year, with each costing $2.70 to make and priced at $4.70. The discount rate is 11 percent and the tax rate is 24 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 Should the company make the purchase? O No Yes
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