Question
Pepito would like to have a business and is considering selling used cars. His initial investment will be $5,000 (purchase of first car at $4000
Pepito would like to have a business and is considering selling used cars. His initial investment will be $5,000 (purchase of first car at $4000 plus other startup costs). He expects to sell one car per month (average price $5,000 * 12months) with a gross margin of 20%. Since he will store cars and operate the business from home, his annual fixed costs will be $3,000 (Classified advertisements, cellular, etc.). Which of the following is closest to the NPV? (assume a required return of 25% and that the business will continue forever) Seleccione una:
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