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of it producing a cash flow of only $180,000 per year forever (a perpetuity) if it isn't received well. a. What is the NPV of
of it producing a cash flow of only $180,000 per year forever (a perpetuity) if it isn't received well. a. What is the NPV of the restaurant if the required rate of return you use to discount the project cash flows is 12 percent? b. What are the real options that this analysis may be ignoring? c. Explain why the project may be worthwhile even though you have just estimated that its NPV is negative? a. Assume the required rate of return you use to discount the project cash flows is 12%. What is the NPV of the restaurant if things go well? $ (Round to the nearest dollar.)
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