Question
Imagine you want to start up a company to manufacture and sell Wildcat sunglasses. Youve done your homework and estimate design and launch costs to
Imagine you want to start up a company to manufacture and sell Wildcat sunglasses. You’ve done your homework and estimate design and launch costs to be $120,000. You expect to sell 500 pairs in the first year, 2,000 pairs in second year, and 5,000 pairs in the following three years. The sales price will be $99 and each pair will cost $75 to produce and market.
If your required return is 25%, what is your NPV?
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