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The nihilist Jokubas is setting up a recording studio which will have an annual revenue of $80,000 and annual cost of $40,000. The studio will
The nihilist Jokubas is setting up a recording studio which will have an annual revenue of $80,000 and annual cost of $40,000. The studio will require an initial investment of $20,000. What is the net present value after two years of recording? Jokubas's discount rate is 10%, and income tax in Riga, where he lives, is 20%. In the investment year, depreciation on all items is 20%, then 50% the following year, and 30% in the next year, which is the end of the schedule. A. $49,400 B. $39,100 C. $71,500 D. $41,000
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