Cori’s Dog House is considering the installation of a new co…
Cori’s Dog House is considering the installation of a new computerized pressure cooker for hot dogs. The cooker will increase sales by $8,600 per year and will cut annual operating costs by $14,700. The system will cost $50,400 to purchase and install. This system is expected to have a 7-year life and will be depreciated to zero using straight-line depreciation and have no salvage value. The tax rate is 21 percent and the required return is 12.2 percent. What is the NPV of purchasing the pressure cooker?