Question
Suppose you and your friend have teamed up to sell lemonade on Friday afternoons outside the Alger Hall building in RIC. The lemonade will
Suppose you and your friend have teamed up to sell lemonade on Friday afternoons outside the Alger Hall building in RIC. The lemonade will cost you $3.00 each and your team has planned to sell them for $5.00 each. The lemonade cart will cost you $10,000 and you expect to sell 300 those every Friday afternoon for the next one year. Assuming that you buy the $10,000 cart today and that you operate the cart for 1 year (52 weeks), what is the NPV of your investment at a discount rate of 4% APR?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
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