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ane owns a flower shop. Business has been very good. She has the opportunity to expand her business one of two ways: For $ 7
ane owns a flower shop. Business has been very good. She has the opportunity to expand her business one of two ways:
For $ she can open a new store. She will use a loan to finance of this project. She expects to need an additional $ up front to purchase inventory and other working capital items. She will operate the store for years and will sell it for $ at the end of year at which time she will recover her working capital. She expects to make cash of $ in year $ in year and $ in year before selling this new store.
For $ she can oppen a web site retail business. She will finance this with a loan. It is a higher rate as it is not secured by real estate. She will not need any additional working capital to start this business. She expects to make in year $ in year $ in year and $ for years At the end of year she expects to sell his business for $
All amounts presented are after taxinterest payments. Using Excel, prepare a statement showing investment and cash flows by year. Calculate the NPV and IRR for each of these projects. Write a recommendation as to which project she should pursue and support this with information from your calculations. She cannot due both projects.
Can someone help me start this case study or if someone start rhe excel portion? Thank you
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