Paul Restaurant is considering the purchase of a $11,100 soufflé maker. The soufflé maker has an...

Paul Restaurant is considering the purchase of a $11,100 soufflé maker. The soufflé maker has an economic life of 8 years and will be fully depreciated by the straight-line method. The machine will produce 1,600 soufflés per year, with each costing $2.80 to make and priced at $4.75. The discount rate is 12 percent and the tax rate is 25 percent.

What is the NPV of the project?

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jeff jeffy answered 1 month ago

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Paul Restaurant is considering the purchase of a $10,900 soufflé maker. The soufflé maker has an economic life of 8 years and will be fully depreciated by the straight-line method. The machine will produce 1,200 soufflés per year, with each costing $2.60 to make and priced at $4.95. The discount rate is 10 percent and the tax rate is 23 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2...

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Paul Restaurant is considering the purchase of a $9,800 soufflé maker. The soufflé maker has an...

Paul Restaurant is considering the purchase of a $9,800 soufflé maker. The soufflé maker has an economic life of 6 years and will be fully depreciated by the straight-line method. The machine will produce 1,400 soufflés per year, with each costing $2.50 to make and priced at $4.90. The discount rate is 9 percent and the tax rate is 22 percent. What is the NPV of the project?

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Creole Restaurant is considering the purchase of a $33,000 soufflé maker. The soufflé maker has an economic life of six years and will be fully depreciated by the straight-line method. The machine will produce 2,400 soufflés per year, with each costing $2 to make and priced at $7. Assume that the discount rate is 14 percent and the tax rate is 34 percent. Should the company make the purchase?

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Creole Restaurant is considering the purchase of a $33,000 souffle maker. The souffle maker has an economic life of six years and will be fully depreciated by the straight-line method. The machine will produce 2,400 souffles per year, with each costing $2 to make and priced at $7. Assume that the discount rate is 14 percent and the tax rate is 34 percent. Should the company make the purchase?

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