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You are thinking of starting a pizza delivery business. You already have paid $200 for a report containing estimates required to analyze the business. Purchase
You are thinking of starting a pizza delivery business. You already have paid $200 for a report containing estimates required to analyze the business. Purchase price of delivery vehicle $5000 Annual revenue $8000 Annual expenses $4000 Tax Rate 15.5% Discount Rate 7% CCA rate 30% A) what is the NPV of running the business for 3 years, if you keep the car after? B) what is the NPV of running the business for 3 years if you sell the car at the end of the third year for $1500.
Purchase price of delivery vehicle $5000
Annual revenue $8000
Annual expenses $4000
Tax Rate 15.5%
Discount Rate 7%
CCA rate 30%
A) what is the NPV of running the business for 3 years, if you keep the car after?
B) what is the NPV of running the business for 3 years if you sell the car at the end of the third year for $1500.
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