Question
2. You want to open a bitcoin store where people can come in from the street and buy bitcoins. The store and IT is 250.000.
2. You want to open a bitcoin store where people can come in from the street and buy bitcoins. The store and IT is 250.000. To be credible you need a bitcoin guru to participate in marketing. He wants 200.000 upfront and then 25.000 per month. You also want to pay yourself 25.000 per month. For additional marketing you plan 100.000 to start. The SGA is 5.000 per year. In the first year you plan to sell 5.000 bitcoins for 10.000 each. The number of bitcoins you sell is going to increase by 15% a year, the exchange rate by 25%. Your fee for each transaction is 1%. Tax rate is 25%, project and depreciation time 4 years. What is the projects IRR and NPV (12%)?
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