Question: Problem 6-1 Calculating Project NPV Paul Restaurant is considering the purchase of a $9,300 souffle maker. The souffl maker has an economic life of 5
Problem 6-1 Calculating Project NPV Paul Restaurant is considering the purchase of a $9,300 souffle maker. The souffl maker has an economic life of 5 years and will be fully depreciated by the straight-line method. The machine will produce 1,500 souffls per year, with each costing $2.50 to make and priced at $4.90. The discount rate is 9 percent and the tax rate is 22 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.) sk NPV nces Should the company make the purchase? Yes O No
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