Mary is considering opening a hobby and craft store. She plans to operate the business for six years. Mary requires a minimum 6% return on this investment. What is the NPV of this venture? Cost of equipment $335,000 Working capital needed $185,000 Annual cash inflow from sales $195,000 Annual cash outflow for operating costs $115,000 Overhaul (repair) of equipment in year 3 $17,500 Salvage value of equipment $20,000

Mary is considering opening a hobby and craft store. She plans to operate the business for six years. Mary requires a minimum 6% return on this investment. What is the NPV of this venture? Cost of...

Mary is considering opening a hobby and craft store. She plans to operate the business for six years. Mary requires a minimum 6% return on this investment. What is the NPV of this venture?

Cost of equipment	$335,000
Working capital needed	$185,000
Annual cash inflow from sales	$195,000
Annual cash outflow for operating costs	$115,000
Overhaul (repair) of equipment in year 3	$17,500
Salvage value of equipment	$20,000

Jun 06, 2022

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