Paul Restaurant is considering the purchase of a $11,100 soufflé maker. The soufflé maker has an economic life of 8 years and will be fully depreciated by the straight-line method. The machine will produce 1,600 soufflés per year, with each costing $2.80 to make and priced at $4.75. The discount rate is 12 percent and the tax rate is 25 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.) Should the company make the purchase? Yes No
Paul Restaurant is considering the purchase of a $11,100 soufflé maker. The soufflé maker has an...
Paul Restaurant is considering the purchase of a $9,400 soufflé maker. The soufflé maker has an economic life of 5 years and will be fully depreciated by the straight-line method. The machine will produce 1,300 soufflés per year, with each costing $2.60 to make and priced at $4.95. The discount rate is 10 percent and the tax rate is 23 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2...
Paul Restaurant is considering the purchase of a $9,200 soufflé maker. The soufflé maker has an economic life of 5 years and will be fully depreciated by the straight-line method. The machine will produce 1,600 soufflés per year, with each costing $2.40 to make and priced at $4.85. The discount rate is 10 percent and the tax rate is 21 percent. points What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2...
Paul Restaurant is considering the purchase of a $10,300 soufflé maker. The soufflé maker has an economic life of 7 years and will be fully depreciated by the straight-line method. The machine will produce 1,300 soufflés 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...
Creole Restaurant is considering the purchase of a $11,000 soufflé maker. The soufflé maker has an economic life of four years and will be fully depreciated by the straight-line method. The machine will produce 2,500 soufflés per year, with each costing $2.90 to make and priced at $5.75. Assume that the discount rate is 16 percent and the tax rate is 34 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to...
Raphael Restaurant is considering the purchase of a $27,900 soufflé maker. The soufflé maker has an economic life of 9 years and will be fully depreciated by the straight-line method. The machine will produce 1,980 soufflés per year, with each costing $1.4 to make and priced at $9. Assume that the discount rate is 14 percent and the tax rate is 34 percent. Required: (a) What is the operating cash flow of the project? (Do not include the dollar sign...
3- Raphael Restaurant is considering the purchase of a $12,000 soufflé maker. The soufflé maker has an economic life of five years and will be fully depreciated by the straight line method. The machine will produce 1,900 soufflés per year, with each costing $2.20 to make and priced at $5. Assume that the discount rate is 14 percent and the tax rate is 34 percent. Should Raphael make the purchase?
Calculating Project NPV Creole Restaurant is considering the purchase of a $33,000 soufflé maker. The soufflé maker has an economic life of six years and will be fully depreciated by the straight-line method. The machine will produce 2,400 soufflés per year, with each costing $2 to make and priced at $7. Assume that the discount rate is 14 percent and the tax rate is 34 percent. Should the company make the purchase?
Please solve these two finance questions ns and Problems Calculating Project NPV Flatte Restaurant is considering the purchase of a $7.500 soume maker. The souflé maker has an economic life of five years and will be fully 1. depreciated by the straight-line method. The machine will produce 1,300 soufflés per year, with each costing $2.15 to make and priced at $5.25. Assume that the discount rate is 14 percent and the tax rate is 34 percent. Should the company make...
Taco Taco is considering the purchase of a $2,500,000 flat top grill. The grill has an economic life of 8 years and will be fully depreciated using straight line method. The grill is expected to produce 150,000 tacos per year for the next 8 years, with each costing $1.50 to make and priced at $5. Assume the discount rate is 10% and the tax rate is 21%. The restaurant expects the market value of the grill to be $450,000, 8...
Market Top Investors, Inc., is considering the purchase of a $355,000 computer with an economic life of four years. The computer will be fully depreciated over four years using the straight-line method, at which time it will be worth $102,000. The computer will replace two office employees whose combined annual salaries are $93,000. The machine will also immediately lower the firm’s required net working capital by $82,000. This amount of net working capital will need to be replaced once the...