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The Ham and Egg Restaurant is considering an investment in a new oven with a cost of $160,000, with annual net cash savings of $39,950

The Ham and Egg Restaurant is considering an investment in a new oven with a cost of $160,000, with annual net cash savings of $39,950 for 6 years. The required rate of return is 14%.

At the end of 6 years, the oven will be sold for $25,000.

Compute the net present value of this investment and determine whether or not you would recommend that Ham and Egg invest in this oven.

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