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Question 2 This question requires you to demonstrate how to work With changes in the value of money over time. Assuming a minimum eet size

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Question 2 This question requires you to demonstrate how to work With changes in the value of money over time. Assuming a minimum eet size of 400 taxis, create an NPV model to analyse the protability of this business. You may assume that operating expenses is 40% of the initial investment in year 1 and will increase by 5% every year over the next 9 years. Annual revenue is also expected to increase by 10% each year over the same period. Your model must clearly distinguish between the different types of variables used. (a) Using your model and the Goal Seek feature of Excel, determine the minimum annual revenue required in year 1 in order to meet LCAT'S investment objectives

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