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Problem 6-1 Calculating Project NPV Paul Restaurant is considering the purchase of a $11,000 souffle maker. The souffle maker has an economic life of 8
Problem 6-1 Calculating Project NPV Paul Restaurant is considering the purchase of a $11,000 souffle maker. The souffle maker has an economic life of 8 years and will be fully depreciated by the stralght-line method. The machine will produce 1.400 souffles per year, with each costing $270 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.... 3216.) NPV Should the company make the purchase? O No Yes
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