Should the restauarant consider making the purchase

Reference no: EM13304672

Restuarant is considering the purchase of a $12,000 Waffle Maker with an economic life of five years and will fully depreciate by the straight-line method. The waffle maker will produce 1,900 waffles per year with each costing $2.20 and will be priced at $5.00. The discount rate is 14% and the tax rate is 34%. Should the restauarant consider making the purchase of the Waffle Maker?

Reference no: EM13304672

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