Raphael Restaurant is considering the purchase of a $9,500 soufflé maker. The soufflé maker has an economic life of five...

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Raphael Restaurant is considering the purchase of a $9,500 soufflé maker. The soufflé maker has an economic life of five years and will be fully depreciated by the straight-line method. The machine will produce 1,750 soufflés per year, with each costing $2.50 to make and priced at $5.00. Assume that the discount rate is 12 percent and the tax rate is 30 percent. What is the NPV of the project?

  

    • 11 years ago
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