Should raphael make the purchase

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

Questions Cloud

Explain components are glycerol and butanoic acid : Draw the fat molecule whose components are glycerol and butanoic acid. You may omit hydrogen atoms.

Calculate the accounting break-even point : Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure? Explain what your answer tells you about a 500-unit decrease in projected sales.

What is the impedance of the circuit at resonance : Consider a series RLC circuit with R = 15 , L = 196 mH, C = 75 µF, and a maximum voltage of 148 V. What is the impedance of the circuit at resonance

Explain how many different tripeptides can be made : How many different tripeptides can be made from two molecules of glycine and one molecule of histidine

Should raphael make the purchase : 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.

Explain the sample is compressed to a volume : A sample of gas has an initial volume of 13.4 L at a pressure of 1.27 atm. If the sample is compressed to a volume of 10.2 L, what will its pressure be

What is the net force on one ear drum : When at cruising altitude, a typical airplane cabin will have an air pressure equivalent to an altitude of about 2510 m. During the flight, what is the net force on one ear drum due to this pressure difference

What inflation rate is expected after year 1 : f the yield on 3-year Treasury bonds equals the 1-year yield plus 2%, what inflation rate is expected after Year 1?

What is the projects pi : Bill plans to open a self-serve grooming center in a storefront. The grooming equipment will cost $385,000, to be paid immediately.

User Account

All Pages