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Who Dat Restaurant is considering the purchase of a $10,700 souffl maker. The souffl maker has an economic life of four years and will be
Who Dat Restaurant is considering the purchase of a $10,700 souffl maker. The souffl maker has an economic life of four years and will be fully depreciated by the straight-line method. The machine will produce 2,350 souffls per year, with each costing $2.75 to make and priced at $5.60. Assume that the discount rate is 14 percent and the tax rate is 40 percent. |
What is the NPV of the project? |
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