In: Finance
Paul Restaurant is considering the purchase of a $9,700 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 1,300 soufflés per year, with each costing $2.40 to make and priced at $4.85. The discount rate is 13 percent and the tax rate is 21 percent. What is the NPV of the project?