Determining the how company make the purchase

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Flatte Restaurant is considering the purchase of a $7,500 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 1,300 soufflés per year, with each costing $2.15 to make and priced at $5.25. Assume that the discount rate is 14 percent and the tax rate is 34 percent. Should the company make the purchase?

Reference no: EM132531028

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