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Economic life of four years

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Who Dat Restaurant is considering the purchase of a $9,300 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 1,650 soufflés per year, with each costing $2.10 to make and priced at $4.90. Assume that the discount rate is 14 percent and the tax rate is 34 percent.

Reference no: EM131044621

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