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Visby Rides, a livery car compary, is considering buying some new luxury cars. After extensive research, they come up with the above estimates of free
Visby Rides, a livery car compary, is considering buying some new luxury cars. After extensive research, they come up with the above estimates of free cash flow from this project. Visby leams that a competitor is thinking of oflering similar services, thus reducing Visby's sales. By how much could soles fall before the net present value (NPV) wes zero, given that the cost of eapital is 10%, and that cost of goods sold is 45% of revenues? A. by 23+ B. by 16% c. by 12% D. by 14%
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