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Who Dat Restaurant is considering the purchase of a $10,300 souffl maker. The souffl maker has an economic life of five years and will be
Who Dat Restaurant is considering the purchase of a $10,300 souffl maker. The souffl maker has an economic life of five years and will be fully depreciated by the straight-line method. The machine will produce 2,150 souffls per year, with each costing $2.80 to make and priced at $5.40. Assume that the discount rate is 15 percent and the tax rate is 35 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).) |
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