Question
Fethe's Funny Hats is considering selling trademarked, orange-haired curly wigs for university of Tennessee football games, The purchase cost for a 2-year franchise to sell
Fethe's Funny Hats is considering selling trademarked, orange-haired curly wigs for university of Tennessee football games, The purchase cost for a 2-year franchise to sell the wigs is $ 20,000. If demand is good (40% probability ), then the net cash flows will be 27,000 per year 2 years. If demand is bad (60% probability), then the net cash flows will be 4,000 per year for 2 years. Fethe's cost of capital 11%. Do not round Intermediate calculations What is the expected NPV of the project? Negative value, any, should be indicated by a minus sign. Round your answer to the nearest dollar .
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