Question: Alex is considering to become an Uber driver. He has two estimates about revenue he will get from Uber. First, he thinks that he will

Alex is considering to become an Uber driver. He has two estimates about revenue he will get from Uber. First, he thinks that he will be having 200costumers per year for the next 5 years. Second, he thinks that each costumer will pay $6 per ride in the first year, $6.5 in the second year, $7 in the third year, and $8 in the fourth and fifth years (these are the share that goesto Alex). To do this, however, he has to upgrade his car which will cost him $4,000 today.

If the interest rate was 10%, do you think it is a good idea for Alex to be an Uber driver?

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