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this last one is worth 3 points ) You are thinking of opening an internet coffee shop and estimate the following cash flows. The cost
this last one is worth points You are thinking of opening an internet coffee shop and estimate the following cash flows. The cost of the establishment is $ for the building and $ for equipment. The business will earn $ per year in revenue and have cash expenses of $ per year during its five years of operation. Depreciation on the building and equipment will be $ per year. At the end of five years you expect to sell the coffee shop for an aftertax cash disposition value of $ No other cash flows will occur during the years of operation. Using a percent tax rate, and a percent cost of money, what is the net present value of this business?
this last one is worth points You are thinking of opening an internet coffee shop and estimate the following cash flows. The cost of the establishment is $ for the building and $ for equipment. The business will earn $ per year in revenue and have cash expenses of $ per year during its five years of operation. Depreciation on the building and equipment will be $ per year. At the end of five years you expect to sell the coffee shop for an aftertax cash disposition value of $ No other cash flows will occur during the years of operation. Using a percent tax rate, and a percent cost of money, what is the net present value of this business?
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