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You are considering starting a painting company that costs $1,000 upfront. It has revenues of 2,000 in year 1, 3,000 in year 2, 4,000 in
You are considering starting a painting company that costs $1,000 upfront. It has revenues of 2,000 in year 1, 3,000 in year 2, 4,000 in year 3 and 5,000 in year 4. The costs each year are 40% of the revenues. In year 5, you plan to close it down and you will need to spend $5,000 to clean up the paint. If the interest rate is 10% annually. What is the NPV of this project?
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