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Visby Rides, a fivery car compary, is considering buyhg some naw luxury can. Aftor extensive resaurch, they come up with the above estimates of freo
Visby Rides, a fivery car compary, is considering buyhg some naw luxury can. Aftor extensive resaurch, they come up with the above estimates of freo cash flow from this project. Vieby loarns that a compettor is thinking of offering simlar sorvoes, thus mducing Visby's sales. By how much could sales fall belore the net present vilue (NPY) was zaro, given that the cost of captai is 9%, and that cost of goods sold is 45% of reverwes? A. by 38% 8. by 60% c. by 63% D. by 32% Visby Rides, a livery car company, is considering buying some new hoxury cars Afier nxtensive research, they come up with the above ostimates of free cast fiow foom this project. Visby loarns that. a compeitor is thinking of offering similar servioes, thus reducing Visty's sabes. By how much could sales fal bolore the net present value (NPV) was rero, given that the coat of capied is of, and that cost of goods sold is 45% of trevenues? A. by 34els B. by 50% c. by 63 \% D. by 32%
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