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Rome Restaurant has the opportunity to purchase a new pizza oven for their new line...

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Accounting

Rome Restaurant has the opportunity to purchase a new pizza oven for their new line of pizzas. This oven has a cost of $60,000 and will yield the following cash flows:\ \ Year 1: $12,000\ Year 2: $12,500\ Year 3: $14,000\ Year 4: $16,000\ Year 5: $18,000\ Rome uses the net present value method to evaluate purchasing decisions and assumes a current market interest rate of 8%. \ \ What is the net present value of the pizza oven?

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