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Suppose you plan to star your own business in few years. Based on project sales and costs, You expected that the cash flows over the
Suppose you plan to star your own business in few years. Based on project sales and costs, You expected that the cash flows over the Five years life of the business will be as follows: Year 1 $1,500 Year 2 $3,000 Year 3 $4,000 Year 4 $5,000 Year 5 $6,000 It will cost about $20,000 to begin the new business. You use a 8% discount rate to evaluate new business operation. [1] What is Present Value [2] What is NPV [3] Explain will you suggest to take this project
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