A restaurant chain planned to invest a customer loyalty program, which requires an initial investment of $250,000
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A restaurant chain planned to invest a customer loyalty program, which requires an initial investment of $250,000 and it is expected to generate a cash inflow (Gross Profit) of $50,000 first year with annual growth rate 10%. Assume that the target rate of return is 12% per annum (e.g., R=0.12) and the 1st year of income will not be discounted for NVP calculation, please calculate the 5 year net present value of this project.
Related Book For
Principles of managerial finance
ISBN: 978-0132479547
12th edition
Authors: Lawrence J Gitman, Chad J Zutter
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