Cost of Souffle Maker $27,000 ($27,000) Economic Life 6 years # of Souffles produced per year 2,300
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Cost of Souffle Maker | $27,000 | ($27,000) | ||||
Economic Life | 6 | years | ||||
# of Souffles produced per year | 2,300 | |||||
Cost to make each Souffle | $2 | |||||
Price of each Souffle | $7 | |||||
Discount Rate | 14% | |||||
Tax Rate | 34% | |||||
Step 1: First calculate the Operating Cash Flow | #NAME? | |||||
Step 2: Place the answer you get for your Operating Cash Flow in the year 1 thru year 6 cells below | ||||||
Year 1 | #NAME? | |||||
Year 2 | #NAME? | |||||
Year 3 | #NAME? | |||||
Year 4 | #NAME? | |||||
Year 5 | #NAME? | |||||
Year 6 | #NAME? | |||||
Step 3: Now find the NPV. Be sure to include the initial cost by using cell C58 as it is negative | ||||||
NPV = | #NAME? | (You will accept the project if the NPV is positive) |
Related Book For
Statistics for Psychology
ISBN: 978-0205258154
6th edition
Authors: Arthur Aron, Elaine N. Aron, Elliot J. Coups
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