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You believe you make money arbitraging differences between retailers sales prices by buying at local stores and reselling on Amazon marketplace. You need to invest
You believe you make money arbitraging differences between retailers sales prices by buying at local stores and reselling on Amazon marketplace. You need to invest $100,000 today to get the project going today for a warehouse, servers, and vehicles. You expect you can earn $25,000 per year for the next 5 years starting a year from today. At the end of the project, you expect to pay out $50,000 to cover lawsuits and seller disputes. If your discount rate is 4%, what is the IRR and NPV and should you take the project?
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