Raphael restaurant is considering the purchase of a 8400

Reference no: EM13597874

Raphael Restaurant is considering the purchase of a $8,400 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 1,960 soufflés per year, with each costing $2.6 to make and priced at $6. Assume that the discount rate is 13 percent and the tax rate is 31 percent.

(a) What is the operating cash flow of the project? Round your answer to 2 decimal places. (e.g., 32.74))

(b) What is the NPV of the project? Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.74)

Reference no: EM13597874

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