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Alyssa Edwards is partnering with CoCo Montrese to launch a new product: Two-Headed Pageant Crowns. For Alyssa, this product will produce net income of $4,000
Alyssa Edwards is partnering with CoCo Montrese to launch a new product: Two-Headed Pageant Crowns. For Alyssa, this product will produce net income of $4,000 per year. In addition, Alyssa will be able to save $2,000 per year purchasing Doritos from CoCo.
In 50 years, Alyssa believes their Doritos addiction will disappear, and they will be able to sell their interest in the product to CoCo for $50,000. Alyssa's opportunity cost of capital is 7%
What is the net present value of this project for Alyssa?
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