have to calculate from year 1 to year 5

-Incremental revenue

-Incremental annual operating costs

-Present value of working capital investment and recovery

-Present value of salvage value

-NPV of the project

Here is the information:

$8000 marketing consultant fee

$2000 non refundable deposit on office space

$60000 van

$86 product price (a subscription box) 5 times a week, with average orders of 45 weeks per year

$9 variable cost per box

$3000 principal repayments for bank loan with interest

$12000 salvage value for van at end of 5 years

$5000 upfront for product inventory

$54000 other fixed costs

7% discount rate

There is no salary, but the question mentions earning $30000 per year after tax if you stay with your current job instead of this new one.

Answer rating: 100% (QA)

Okay here are the steps to calculate the NPV of the project Year 1 Incremental revenue 86 5 45 19350 ... View the full answer