Finance

You decide to found a start$-$up$.$ You can choose between the following two alternatives:

Idea "online": One$-$time costs for a server of $($useful life $3$ years, residual value $).$ For programming, you have to pay every year. You calculate a turnover of per year for years $1,2$ and $3.$

Idea "trade": One$-$time costs for a website of $($useful life $3$ years, residual value $).$ You have to pay per month for a storage room. You expect a monthly turnover of in the $1^{1t}$ year, in the $2^{nd}$ year and in the $3^{rd}$ year.

Round to two decimal places and use an interest rate of $10\%.$

Calculate the net present value for Idea "online": $$

Calculate the net present value for idea "trade": $$