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You are the owner of 'Howl Coffee! You just got a loan and opened a new 'Howl Coffee' store in Riverside, CA spending $250,000 today
You are the owner of 'Howl Coffee! You just got a loan and opened a new 'Howl Coffee' store in Riverside, CA spending $250,000 today to open the store. You expect the store to make the following cash flows in the next three years: Cash flow year 1: -$15,000 Cash flow year 2: $45,000 Cash flow year 3: $85,000 w Then, you expect to sell your store to a corporatized, national chain, Star Ducks, in year 4 for $400,000. What is the NPV of your 'Howl Coffee Riverside store if these cash flows materialize, and your discount rate is 8%? O (a) -$43,179 O (b) $35,179 O (c) $110,179 (d) $136,179 O (e) $636,179
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