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Unanswered Unanswered Question 3 0/1 pts The GTAA is considering a investment in a new concessions concept at Grant Field in Atlanta. Project A is
Unanswered Unanswered Question 3 0/1 pts The GTAA is considering a investment in a new concessions concept at Grant Field in Atlanta. Project A is a kiosk concept were hot foods are dispensed without any human intervention except for the customer. Project B is acquisition of a food truck (to prepare the same foods) that would require 2 employees to efficiently operate. The kiosk would have an expected useful life of 3 years (after which it would have to be replaced), while the food truck useful life would be 5 years. Below is a projection of the investment and expected free cash flow from each project. Based on these projections which project would have the highest NPV? Use 9.2% as GTAA's cost of capital Kiost Food Truck FY2021 -$450,000 -$300,000 FY2022 $400,000 $220,000 FY2023 $400,000 $240,000 FY2024 $300,000 $240,000 FY2025 0 $200,000 Fy2026 0 $100,000 Solution Question 4 0/1 pts Continuing with the GTAA kiosk/food truck investment, what is the NPV of the Food Truck project used to answer the question above? $1.000,900 Kiost Food Truck. $492,087 $1,355.054 $1,013,078 $482,125
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