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Raider restaurant is considering the purchase of an 8 million dollar flat top grill. The grill has an economic life of six years and will
Raider restaurant is considering the purchase of an 8 million dollar flat top grill. The grill has an economic life of six years and will be fully depreciated using the straight line method. The grill is expected to produce $550,000 tacos per year for the next 6 years, with each costing $3.50 to make and priced at $8. assume the discount rate is 10% and the tax rate is 21%. The restaurant expects the market value of the grill to be zero, 6 years from now. calculate the net present value for the project
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