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You start a small business grooming pets door-to-door that you intend to run for 10 years and then sell. You will need a specially equipped
You start a small business grooming pets door-to-door that you intend to run for 10 years and then sell. You will need a specially equipped van that will cost you $50,000 to buy and will need $1,000 of maintenance each year (except the last year), plus new tires in year 5 costing $2,000 and new equipment costing $3,500 in year 7. If you use a discount rate of 3% (compounded quarterly), how much revenue must you make on average by the end of each year for the next 10 years for this venture to have a net present value of $200,000?
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