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You are thinking of opening an internet coffee shop and estimate the following cash flows. The cost of the establishment is $ 1 . 2
You are thinking of opening an internet coffee shop and estimate the following cash flows. The cost of the establishment is $ for the building and $ for equipment. The business will earn $ per year in revenue and have cash expenses of $ per year during its five years of operation. Depreciation on the building and equipment will be $ per year. At the end of five years you expect to sell the coffee shop for an aftertax cash disposition value of $ No other cash flows will occur during the years of operation. Using a percent tax rate, and a percent cost of money what is the net present value of this business?
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