What is the npv of purchasing the pressure cooker

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Question - Cori's Dog House is considering the installation of a new computerized pressure cooker for hot dogs. The cooker will increase sales by $15,700 per year and will cut annual operating costs by $16,400. The new system will also prompt a $500 increase in net working capital. The system will cost $59,000 to purchase and install. This system is expected to have a 4-year life and will be depreciated to zero using straight-line depreciation and have no salvage value. The tax rate is 21 percent and the required return is 13.9 percent. What is the NPV of purchasing the pressure cooker?

Reference no: EM133131430

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