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Yummy Pizza Co . is looking to purchase a new woodfire pizza oven that costs $ 1 5 , 0 0 0 . This new

Yummy Pizza Co. is looking to purchase a new woodfire pizza oven that costs $15,000. This new oven will replace their current fully depreciated oven that they think they can sell for $1,500. The new oven will allow the company to produce more pizzas which will result in new sales of $7,500 per year with increased costs of $1,500 per year. They expect to be able to sell the pizza oven at the end of 10 years for $1,500 and will be straight lined depreciated over the 10-year period to zero. Yummy Pizza Co. has a marginal tax rate of 34% and its required rate of return is 15%. What is the NPV of the project?
$7,434
$9,305
$8,669
$7,538
-$1,043
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