# Cori's Dog House is considering the installation of a new computerized pressure cooker for hot dogs. The

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## Question:

Cori's Dog House is considering the installation of a new computerized pressure cooker for hot dogs. The cooker will increase sales by $7,900 per year and will cut annual operating costs by $14,000. The system will cost $48,300 to purchase and install. This system is expected to have a 6-year life and will be depreciated to zero using straight-line depreciation and have no salvage value. The tax rate is 34 percent and the required return is 11.5 percent. What is the NPV of purchasing the pressure cooker?