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You have an opportunity to make an investment for an Apple Garden. You have the land and the initial investment you need to make to
You have an opportunity to make an investment for an Apple Garden. You have the land and the initial investment you need to make to build the garden is 100.000 USD. Next year you will start to earn money. Your revenue expectation for year 1 is 10.000 USD. Each year you expect 10% increase of your turnover. Each year you will have 5.000 USD of labor cost and 3.000 USD of Maintenance cost. After 10 years, the trees are expected to be so old so that you will not be running the garden. Would you invest in this opportunity? Please use NPV analysis in Excel and clearly indicate revenue, cost categories and formulas you use. Take MARR as 10%. You have an opportunity to make an investment for an Apple Garden. You have the land and the initial investment you need to make to build the garden is 100.000 USD. Next year you will start to earn money. Your revenue expectation for year 1 is 10.000 USD. Each year you expect 10% increase of your turnover. Each year you will have 5.000 USD of labor cost and 3.000 USD of Maintenance cost. After 10 years, the trees are expected to be so old so that you will not be running the garden. Would you invest in this opportunity? Please use NPV analysis in Excel and clearly indicate revenue, cost categories and formulas you use. Take MARR as 10%
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