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You are thinking of starting a business producing disinfectant spray that require initial investment of $90,000. You plan to retire 10 years from now, hence

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You are thinking of starting a business producing disinfectant spray that require initial investment of $90,000. You plan to retire 10 years from now, hence will sell the business in 10 years. The annual operating expenses is estimated to be $30,000 You foresee the demand for disinfectant spray is high in the recent years and expect to have annual revenue of $80,000 in the first two years, followed by an annual revenue of $60,000 for the remaining years. After 10 years, the salvage value of equipment at that time is expected to be $40,000. Your MARR is 20% effective. Assume expenses occur at the beginning of each year and revenue at the end of each year. (a) Calculate the payback period. Express your answer in 2 decimal places. (b) Calculate the NPV for the business. Express your answer in 2 decimal places. (c) What is the IRR? Express your answer in percentage and 2 decimal places. (d) Should you invest in this business? Explain why and why not. A. Yes, NPVZO B. Yes, NPV 0 C. No, NPVZO (d) Should you invest in this business? Explain why and why not. A. Yes, NPVZO B. Yes, NPV 0 C. No, NPV20 D. No, NPV 0 Enter the Letter of the correct

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