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( Ignore income taves in this problem ) Steph Lymn is considering starting a small catering business. She woutd need to purchase a delivery van
Ignore income taves in this problem Steph Lymn is considering starting a small catering business. She woutd need to purchase a delivery van and various equipment costing $ to equip the business and another $ for inventories and other working capital needs. Rent for the building used by the business will be $ per year. Steph's marketing studies indicate that the annual cash inflow from the business will amount to $ In addition to the building rent, annual cash outflow for operating costs will amount to $ Steph wants to operate the catering business for only six years She estimates that the equipment could be sold at that time for of its ofiginal cost. Steph uses a discount rate.
Required:
Compute the net present value of this investment.
Would you advise Steph to make this investment?
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