The Continental Firehouse is considering extending its hours to open in the mornings as a caf. Purchase

The Continental Firehouse is considering extending its hours to open in the mornings as a café. Purchase of additional restaurant equipment (i.e. espresso/cappuccino maker) will cost $65,000. Management believes that there will be strong demand for the café which would result in additional net revenues to the firm of $32,000 for each of the next three years. What is the NPV of undertaking the project if the discount rate is 12.5% for this project?

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