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Clyde has the opportunity to purchase a large building for $549,979. He will need to spend additional $117,267 to renovate and convert to an upscale
Clyde has the opportunity to purchase a large building for $549,979. He will need to spend additional $117,267 to renovate and convert to an upscale dinning establishment. He estimates the following after tax cashflows. Year 6 cashflow includes the terminal value of the venture. What is the net present value of the venture if Clyde's cost of capital is 10% (round to the nearest dollar).
Year | Cash-flows |
1 | 155,365 |
2 | 165,407 |
3 | 189,638 |
4 | 201,323 |
5 | 111,133 |
6 | 547,936 |
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