Chauhan Restaurant is considering the purchase of a souffl maker that costs $10,500. The souffl maker...

Transcribed Image Text:

Chauhan Restaurant is considering the purchase of a souffl maker that costs $10,500. The souffl maker has an economic life of 7 years and will be fully depreciated by the straight-line method. The machine will produce 1,400 souffls per year, with each costing $2.70 to make and priced at $4.70. The discount rate is 11 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.) NPV Should the company make the purchase? No O Yes Chauhan Restaurant is considering the purchase of a souffl maker that costs $10,500. The souffl maker has an economic life of 7 years and will be fully depreciated by the straight-line method. The machine will produce 1,400 souffls per year, with each costing $2.70 to make and priced at $4.70. The discount rate is 11 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.) NPV Should the company make the purchase? No O Yes