In this case, a cost-return analysis must be performed. The souffle maker must be justified to be producing more value than it consumes with the purchase. Assuming that the profit on each souffle is $5, the machine will produce $69,000 worth of souffles. If the machine is discounted by 14% and taxed at a rate of 34%, then it will cost $31,114.80. This means that the machine should be purchased, as it makes more money than it costs.
