Question
Your company is looking at designing a new app for college students to keep track of everything they need for their student organization participation. The
Your company is looking at designing a new app for college students to keep track of everything they need for their student organization participation. The app will cost $6,000,000 upfront (year 0) to develop and $500,000 per year for marketing, cloud storage, and data privacy management. Of course, students are not willing to pay much for this app, but the company thinks they would pay $10 per year for convenience. If this product sells for the next 5 years, how many students per year due they need to subscribe in order to breakeven with their Cost of Capital of 20% which is the return required by the venture capital firm? Please use excel and show equations
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started