Question
You are considering starting a cleaning company that costs $4,000 upfront. You expect the business to generate revenues of 3,500 in year 1, 5,200 in
You are considering starting a cleaning company that costs $4,000 upfront. You expect the business to generate revenues of 3,500 in year 1, 5,200 in year 2, 2,700 in year 3, and 4000 in year 4. The costs each year are 25% of the revenues. In year 5, you plan to close the business and you will need to spend $2,500 for the closure. If the interest rate is 9% annually, what is the NPV of the business? (Round off your answer to two decimal places. Do not put commas (the system will do it) and $ sign. If your answer is 123,456.789, then type 123,456,79)
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