Question
Liz Perry, is the chief financial officer of the Pasta House, a not-for-profit entity that provides hot meals to the homeless. She is considering the
Liz Perry, is the chief financial officer of the Pasta House, a not-for-profit entity that provides hot meals to the homeless. She is considering the acquisition of a pasta processor with a cost of $936,000 and an installation cost of $22,000. Her analysis suggests that the pasta processor will save the Past House $192,850 a year for the next 8 years. What is the NPV of this investment using a 10 percent hurdle rate? Should Liz buy the pasta processor?
1. $ 70,841, accept the proposal
2. $150,239, accept the proposal
3. $ (92,620), reject the proposal
4. $ (63,176), reject the proposal
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Financial Analysis with Microsoft Excel
Authors: Timothy R. Mayes, Todd M. Shank
7th edition
1285432274, 978-1305535596, 1305535596, 978-1285432274
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