Paul Restaurant is considering the purchase of a $10,500 soufflé maker. The soufflé maker has an economic life of 7 years and will be fully depreciated by the straight-line method. The machine will produce 1,400 soufflés per year, with each costing $2.70 to make and priced at $4.70. The discount rate is 11 percent and the tax rate is 24 percent. |
What is the NPV of the project? |
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