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You are considering starting an air delivery business. Your will need to spend $98,000 today to purchase the airplane and other necessary equipment. You expect
You are considering starting an air delivery business. Your will need to spend $98,000 today to purchase the airplane and other necessary equipment. You expect to generate cash flows (after expenses) of $20,000 per year for the first five years and then $16,000 per year for the next 5 years. At the end of 10 years, you think you can sell the business for about $95,000. If your required return is 9%, what is the NPV of this project
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