Question
A) You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $75,000 immediately.
A) You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $75,000 immediately. If your cost of capital is 6.5%,
what is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV?
The minimum dollar amount is (Round to the nearest dollar.)
B) You have an opportunity to invest $110,000 now in return for $79,900 in one year and $30,000 in two years. If your cost of capital is 9.3%, what is the NPV of this investment?
The NPV will be $ (Round to the nearest cent.)
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