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Rapunzel owns a wig company on Etsy that generates $ 2 5 , 0 0 0 per year. She purchased a market report from Flynn
Rapunzel owns a wig company on Etsy that generates $ per year. She purchased a market report from Flynn for $ to help her decide whether to open a hair salon. She would have to close her Etsy shop to open the salon. It would cost $ today and $ in one year to get the salon location ready, during which time no revenue could be earned. In its nd and rd year, the salon would earn $ Salon revenue in years and would be $At the end of years, Rapunzel will retire. There will be no resale value of the Etsy store or salon. Assume an interest rate of annually. Should Rapunzel open the salon? Show your work using the NPV method and state your decision
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