Paul Restaurant is considering the purchase of a RM9,300 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 1,400 soufflés per year, with each costing RM1.97 to make and priced at RM4.95. The discount rate is 14 percent and the tax rate is 21 percent. Calculate the NPV of the project
Paul Restaurant is considering the purchase of a RM9,300 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 1,400 soufflés per year, with each costing RM1.97 to make and priced at RM4.95. The discount rate is 14 percent and the tax rate is 21 percent. Calculate the NPV of the project
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Paul Restaurant is considering the purchase of a RM9,300 soufflé maker. The soufflé maker
has an economic life of five years and will be fully
The machine will produce 1,400 soufflés per year, with each costing RM1.97 to make and
priced at RM4.95. The discount rate is 14 percent and the tax rate is 21 percent. Calculate the
NPV of the project?
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