You are planning a business venture and have determined the following: 1) initial start-up costs will...

You are planning a business venture and have determined the following: 1) initial start-up costs will be $50,000; 2) revenue will be $25,000 per year for 6 years; 3) costs will be $11,000 per year; and 4) you will be able to sell the assets at the end of the 6 years for a salvage value of $3000. If the required rate of return is 12%, what is the net present value? what is the Internal Rate of Return?

Expert Solution

jeff jeffy answered 1 year ago

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