Please show all work, step by step /formulas if you use excel. I need to be able to break down the work
Blue Wolf Restaurant is considering the purchase of a $10,700 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 2,350 soufflés per year, with each costing $2.75 to make and priced at $5.60. Assume that the discount rate is 14 percent and the tax rate is 40 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?|