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The Ham and Egg Restaurant is considering an investment in a new oven that has a cost of $57,000, with annual net cash flows of
The Ham and Egg Restaurant is considering an investment in a new oven that has a cost of $57,000, with annual net cash flows of $9,930 for 8 years. The required rate of return is 2%.
(Click here to see present value and future value tables)
A. Compute the net present value of this investment. Round your present value factor to three decimal places and final answer to the nearest dollar.
$
B. Determine whether or not you would recommend that Ham and Egg invest in this oven.
The Ham and Egg should invest in this oven.
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