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Who Dat Restaurant is considering the purchase of a $9,500 souffl maker. The souffl maker has an economic life of five years and will be
Who Dat Restaurant is considering the purchase of a $9,500 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 1,750 souffls per year, with each costing $2.50 to make and priced at $5.00. Assume that the discount rate is 12 percent and the tax rate is 30 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).) NPV $ Should the company make the purchase? Yes No
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