Solution-What is the npv of the project

What is the npv of the project

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Flatte Restaurant is considering the purchase of a $10,000 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 2,000 soufflés per year, with each costing $2.40 to make and priced at $5.25. Assume that the discount rate is 13 percent and the tax rate is 40 percent.

What is the NPV of the project?

Should the company make the purchase?

Reference no: EM131206322

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What is the npv of the project : What is the NPV of the project? Should the company make the purchase?

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What is the npv of the project

Reference no: EM131206322

Reference no: EM131206322

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