Avignon Restaurant is considering the purchase of a $9,400 souffl maker. The souffl maker has...
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Avignon Restaurant is considering the purchase of a $9,400 souffl maker. The souffl maker has an economic life of five years and will be fully depreciated by the straight-line method. The machine will produce 1,700 souffls per year, with each costing $2.50 to make and priced at $4.95. Assume that the discount rate is 16 percent and the tax rate is 24 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Should the company make the purchase? No Yes
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