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Finance Assignment | Professional Writing

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June 9th, 2020
Paul Restaurant is considering the purchase of a $9,800 soufflé maker. The soufflé maker has an economic life of 6 years and will be fully depreciated by the straight-line method. The machine will produce 1,400 soufflés per year, with each costing $2.50 to make and priced at $4.90.

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The discount rate is 9 percent and the tax rate is 22 percent.
What is the NPV of the project?

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