Should raphael make the purchase

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Reference no: EM13256093

Raphael Restaurant is considering the purchase of a$9,000 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 1,500soufflés per year, with each costing $2.30 to make and priced at $4.75. Assume that the discount rate is 14 percent and the tax rate is 34 percent.

Should Raphael make the purchase?

Reference no: EM13256093

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