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You are the owner of a pizzeria near your college. Due to increasing demand, you are planning to add another pizza oven to your pizzeria.
You are the owner of a pizzeria near your college. Due to increasing demand, you are planning to add another pizza oven to your pizzeria. The cost of the new brick oven is $10,000 and it is expected to generate annual revenues of $5000 per year. The operating cost is $500 per year, and the oven can be sold at a salvage value of $1000 after 5 years. Assume that the cost of capital is 10%, and the oven has
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