If Mike instead invests an additional

$5,000

in new equipment and upgrades for the bakery each year, the bakery will remain operational and generate net cash flows of

$15,000

into perpetuity. Given the same initial investment of

$80,000

and discount rate of

15%

, calculate the NPV of opening the bakery. Should Mike quit his job and start the bakery?

If Mike instead invests an additional $5,000 in new equipment and upgrades for the bakery each year, the bakery will remain operational and generate net cash flows of $15,000 into perpetuity. Given the same initial investment of $80,000 and discount rate of 15%, calculate the NPV of opening the bakery. Should Mike quit his job and start the bakery