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A cookie company wants to expand its retail operations. Based on a preliminary study, 10 stores are feasible in various parts of the country. The
A cookie company wants to expand its retail operations. Based on a preliminary study, 10 stores are feasible in various parts of the country. The cash flow at each store is expected to be $180 per year for five consecutive years. Each store requires an immediate investment of $400 to set up operations.
Assuming a required rate of return 9%, what is the NPV of each store? $ Place your answer in dollars and cents, without any comma or dollar sign.
Work your analysis out using at least four decimal places of accuracy.
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