Question
You are considering a new blockchain-based NFT project at your small chain of laundromats. You estimate that the cost of the project will be $80,000
You are considering a new blockchain-based NFT project at your small chain of laundromats.
You estimate that the cost of the project will be $80,000 in year 1 and $100,000 in year 2.
If the NFTs sell well, it will generate an estimated $30,000 in operating cash flow per year in years 1 through 3, and $50,000 in year 4, at which point the project will be mature and generate $50,000 per year every year thereafter.
At a discount rate of 20%, what is the NPV of the project?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
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